ANNUAL REPORT 2020 FINNLINES 2020 3 Contents

Highlights 2020 2 CEO’s Review 4 CFO’s Review 6 Business concept, values and strategic goals 8 Business environment 1010 Shipping and Sea transport services 1313 Passenger services 1414 Port operations 1717 Environment and safety 1919 Human resources 2323 Financial Statements Board of Directors’ Report 2626 Consolidated statement of comprehensive income 3030 ConsolidatedConsolidated statement of financialfinancial position position 31 ConsolidatedConsolidated statement of changeschanges in equity 3232 Consolidated statementstatement ofof cashcash flows flows 33 33 Profit andand lossloss account,account, ParentParent Company 3434 BalanceBalance sheet, Parent Company 3535 w Cash flowflo statement,statement, ParentParent Company 36 Five-year keykey figures figures 37 CalculationCalculation of key ratios 3838 QuarterlyQuarterly data 39 Board’sBoard’s Proposal 4040 Auditor’sAuditor’s Report 4141 Corporate Governance Statement 4343 Board of Directors 4848 Executive Committee and Board of Management 4949 Finnlines fleet fleet 50 Contact information 5252 Operating areas 5252 The Grimaldi Group 5353

4 Finnlines is a leading shipping operator of ro-ro and passenger services in the Baltic Sea, the North Sea and the Bay of Biscay. The Company’s passenger-freight vessels offer services from Finland to Germany and via the Åland Islands to Sweden, as well as from Sweden to Germany. Finnlines’ ro-ro vessels operate in the Baltic Sea, the North Sea and the Bay of Biscay. The Company has subsidiaries or sales offices in Germany, Belgium, Great Britain, Sweden, Denmark and Poland. In addition to sea transportation, the Company provides port services in Helsinki and Turku. Finnlines is a part of the Grimaldi Group, one of the world’s largest operators of ro-ro vessels and the largest operator of the Motorways of the Sea in Europe for both passengers and freight. This affiliation enables Finnlines to offer liner services to and from any destination in the Mediterranean, West Africa as well as the Atlantic coast of both North and South America.

FINNLINES 2020 1 Highlights 2020

Key financial figures

Revenue EBITDA Interest-bearing debt Equity ratio EUR million EUR million EUR million improved to * 484.0 140.8 331.7 60.7% * Excluding leasing liabilities. Revenue by function

Freight Services Passenger Services Port Operations EUR million EUR million EUR million 422.8 39.0 42.8* * Including internal revenue between the segments EUR 20.6 million.

Result before interest and Breakdown of external Revenue 2016–2020 taxes (EBIT) 2016–2020 revenue 2020 EUR million EUR million 600 100 88% 8% 500 80 4% 400 60 300 40 200

100 20 Freight Services Passenger Services 0 0 16 17 18 19 20 16 17 18 19 20 Port Operations

IFRS IFRS EUR million 2020 2019 Revenue 484.0 574.8 Result before interest, taxes, depreciation and amortisation (EBITDA) 140.8 169.8 Result before interest and taxes (EBIT) 76.2 104.8 Result for the reporting period 69.7 98.3 Equity ratio, % 60.7 58.5 Interest-bearing debt, MEUR* 331.7 372.2 Net gearing, % 45.5 50.8 * Excluding leasing liabilities.

Key operational figures

Finnlines transported in 2020

cargo723,000 units cars154,000 tons1,107,000 of non-unitised freight passengers501,000

2 Finnlines continues to secure vital sea transports

The current coronavirus pandemic has taken the world by surprise and challenged governments, Our largest ro-ro vessels societies and economies globally. have the capacity to carry trailers Finland’s island-like location, and its dependence on per sailing. sea transportation require frequent and regular liner traffic services. With more than 170 departures each 300 week and with a fleet of 21 ships, Finnlines has been ensuring that the flow of supplies continues to run Our largest ro-ro passenger vessels smoothly in these exceptional times. Finnlines is an have the capacity to carry integral part of Finland’s security of supply. passengers Despite the pandemic, Finnlines is looking far into per sailing. the future and making investments in energy efficiency and eco-efficient services. In the future, Finnlines 554 trailers will be in an even better position to respond to both per sailing. customers’ and society’s needs and to also continue to ensure high-quality sea transport services. 250

Strategic expansion Significant investments in the fleet

Finnlines has invested over EUR 1 billion in the past decade and will invest over EUR 500 million in new technology, digitalisation and green shipping in the coming years.

Finnlines will determinedly continue to implement its strategy. The EUR 500 million newbuilding programme proceeded as planned during the year, and all three hybrid ro-ro vessels are now at the production stage. Finneco I will be the first vessel to be completed and is scheduled to start operation in November 2021. The design process of the Superstar ro-pax vessels has also continued. In the design, particular at- The Superstar ro-paxes’ interior design draws inspiration from tention has been paid to fast and efficient cargo han- the archipelago. dling. These vessels, intended for the route between Finland and Sweden, will together provide over 40% more cargo capacity than today. In addition, special in the interior layout and lighting, for example. The panorama attention in the design has been devoted to a new windows let in plenty of light and offer spectacular views over kind of customer experience and a pleasant stay the archipelago. onboard. The Superstar ro-pax vessels exploit technology Ballast water management and digitalisation. Furthermore, recycling and envi- In addition to vessel orders, the Company has started instal- ronment friendliness onboard extend from the ves- lation of ballast water treatment equipment on ships. The sel’s technical details to choices of materials and project will be completed in 2023. Ballast water is used to trim products, partners, and even up to the service con- and stabilise ships, but it may carry harmful aquatic species cept. The source of inspiration for the interior decora- which out-compete native species, disrupting fragile marine tion has been the archipelago sea which is reflected ecosystems.

FINNLINES 2020 3 CEO’s review Finnlines invests EUR 0.5 billion in Green vessels and for long-term growth – Safeguarding National Emergency Supply with emission-free technology

2020 was operationally an extremely challenging year, Despite these exceptional times, the shipping sector and the global Covid-19 pandemic demanded extraordinary as a whole has guaranteed reliable transport links globally response and efforts from all of us. International trade fell between markets and continued to keep essential sup- throughout the business segments and passenger travel ply lines open. Likewise, Finnlines has maintained critical has plummeted due to the travel restrictions imposed sea bridges between Finland and Sweden and between to hinder the virus’ spread. The Covid-19 pandemic has Finland and Continental Europe, Russia and the UK as well. changed the world, and like any other shipping operator, Finnlines has since 1947 played a vital role in supporting Finnlines also suffered from the slowdown in global trade. national exporters and importers. It has become evident that carriers like us, provide a lifeline to both the private According to the Finnish sea transport statistics, and the public sector in Finland. Finnlines alone transports Finland’s total sea freight volumes amounted to 101.3 mil- more than a third of the one million rubber-tyred units, i.e. lion tonnes in 2020. Total shipping decreased by 5.3 million trucks and trailers, which move annually across Finland’s tonnes compared to the previous year’s figures. Exports three main sea bridges, Finland–Estonia, Finland–Sweden decreased by 5.8%, totalling 50.2 million tonnes. Imports and Finland–Germany. Finnlines is a critical player in trans- decreased by 4.5% to 45.8 million tonnes on the previous porting medicines, foodstuffs and other commodities to year. Finland. Furthermore, Finnlines is an important carrier of industrial products, spare parts, machinery and equipment. The Finnlines Group’s turnover was EUR 484.0 (574.8) As an example, Finnlines’ Naantali–Långnäs–Kapellskär million in the reporting period, a decrease of 16% com- route is the most important western maritime route in safe- pared to the same period in the previous year. Result before guarding the security of supplies for Finland. Finnlines is the interest, taxes, depreciation and amortisation (EBITDA) was market leader in maritime transport between Finland and EUR 140.8 (169.8) million, a decrease of 17%. At the end of Sweden. the first quarter, Finnlines reacted promptly to the first signs of the widespread economic fallout of the ongoing crisis In 2020, we reached an important milestone in our EUR and initiated a cost saving plan to mitigate the Covid-19 im- 0.5 billion green newbuilding programme. All three ultra pact.e W were not, of course, immune, but our flexibility and green hybrid ro-ro vessels are now undergoing different agility, which are based on an in-depth industry knowledge, construction stages and the investment programme contin- allowed us to successfully implement the cost savings plan. ues as planned, on schedule and as budgeted. The vessels As a result, we maintained a feasible profitability throughout will be built with the latest technology available to ensure the latter part of the year and the result for the reporting pe- the lowest carbon dioxide and other emissions. In addition riod was EUR 69.7 (98.3) million, which we are very proud of. to lithium-ion battery systems that will allow zero-emissions

4 Finnlines has been operating regularly for many years on Finland’s most critical maritime routes and has always safe- guarded Finland’s security of supply and is able to provide the service in an environmentally friendly way, under market- based terms and without public support.

at port, the vessels will also be fitted with emission abate- thus safeguarding the biggest share of Finland’s security of ment systems, solar panels, and an air lubrication system supply of medicines, goods, machinery, components and to help cut emissions further. Deliveries of all three recently other vital products. named vessels in the series, Finneco I, Finneco II and Finneco III, are expected between November 2021 and It would be important that the Finnish Government rec- April 2022. ognises the role of Finnlines as a first rank maritime carrier of Finland with a key role in security of supply, also when In addition to these three ro-ro vessels, we have also it comes to public aid distributed to maritime companies. ordered two eco-efficient Superstar ro-pax vessels, Indeed, it is understandable that public aid to maritime ac- which are scheduled to start operating in 2023. Superstar tors are needed in a challenging situation when authorities ro-pax vessels will bring new innovative solutions to our have imposed restrictions which complicate normal opera- services and the environmental perspective is taken into tions and market-based operations are at risk. But, if state account everywhere. Onshore power supply will provide aid is distributed, it should be distributed in the proportion an alternative source of energy enabling emission-free op- in which a company takes responsibility for Finland’s se- erations in port. Light management and ventilation will be curity of supply. Unfortunately this was not the case during designedo t enhance energy efficiency even in changing the pandemic crisis and about EUR 70 million were exclu- conditions. Moreover, two-speed reduction gears will im- sively distributed to companies competing with Finnlines, prove propulsion efficiency. To meet customers’ demands, on same routes and on same types of service, but not to Finnlines will deploy a new vessel type especially designed Finnlines. This of course is causing distortion of free com- for its Sweden–Finland traffic. The new ships will have a petition to the detriment of penalized companies, of national full intake up to 5,100 lane metres and 1,100 passengers. economy and of consumers. In a moment where Finnlines is In other words, the vessels have the capacity to carry ap- serving loyally the nation without subsidies, without service proximately 200 cars and 290 trailers or 250 trucks per cuts and with important sustainable investments in green voyage. These most environmentally friendly vessels in the ships ongoing, operating and competing against subsidised world show our superior role as forerunners in sustainable companies during the biggest pandemic experienced in the shipping. last century has become more tiresome and more difficult.

With our environmental strategy, we are able to meet Alternative ways of support from the State to all ship- the needs of our customers and society even better, and ping companies could be possible, more horizontal, at the same time, we can guarantee safe and high-quality more equal, less distortive, cleaner, more viable and more sea transport services. Today’s and tomorrow’s society, sustainable than the present one, such as public coverage customers and stakeholders expect more, and, therefore, of standard carriers’ costs, i.e. port costs, seamen costs, responsible actions and sustainable investments are be- shore personnel costs or pension costs. This alternative coming more and more important each year when choosing fashion would be also in accordance with existing EU State a commercial partner. At Finnlines, we consider it important Aid rules. to continuously develop the quality and efficiency of our operations and improve the vessels both from a technological I would like to take this opportunity to thank our cus- and environmental point of view. We have been committed tomers and our stakeholders for their confidence in in the past and we will be committed in the future to carry Finnlines. Looking into 2021, regular high frequency traffic out long-term efforts for the environment because sustain- between Finland and the rest of Europe will continue to be ability is the cornerstone of our strategy and thus embed- the foundation of Finnlines’ operations as well as contin- dedn i our everyday actions. We are committed to the IMO ued investments in sustainability. By constantly renewing target to reduce carbon dioxide emissions by 50% by 2050 and developing the fleet for our customers, using the latest and in the last ten years, we have already been able to re- technology and innovations, we can proudly say that we are duce vessels’ carbon dioxide emissions more than 30%. Finland’s premier seafreight operator and also a large trans- porter of passengers. I would also like to extend my sincere As is the case in other shipping companies, Finnlines’ gratitude to all our personnel onboard, in terminals and of- turnover and profitability have also declined due to the fices for their persistence in delivering good results in such economic slowdown and uncertain market conditions dur- an exceptional and very demanding year of 2020. ing the corona pandemic. Yet, we did not lay down any vessels but were operating normally throughout the whole year, Emanuele Grimaldi

FINNLINES 2020 5 CFO’s review Agile cost control and financial strength enabled us to retain our profitability

The Finnish foreign trade is nearly completely dependent Financial performance on sea connections as about 90% of Finland’s exports and The Finnlines Group recorded revenue totalling EUR 484.0 80% of its imports is shipped by sea. Finnlines has a vital (574.8) million in 2020, a decrease of 16% compared to role in transporting critical goods, such as medicines, food- the previous year. Shipping and Sea Transport Services stuffs and other consumer goods, which are essential for generated revenue amounting to EUR 461.8 (550.9) million, people and industry. Our services specialise in freight and of which passenger-related revenue was EUR 39.0 (59.9) play a key role in the smooth flow of supplies. million. The revenue of Port Operations was EUR 42.8 (45.4) The Covid-19 pandemic continued to impact Finnlines, million. The internal revenue between the segments was but after a drastic drop of revenues in the second quarter, EUR 20.6 (21.5) million. cargo volumes started to pick up. We shipped 723,000 The result before interest, taxes, depreciation and amor- (738,000 in 2019) cargo units and carried 154,000 (166,000) tisation, EBITDA, came to EUR 140.8 million against EUR cars (not including passengers’ cars). The coronavirus out- 169.8 million after 2019. Net financial expenses decreased break affected our passenger traffic and reduced our pas- to EUR -5.6 (-7.5) million. Financial income was EUR 0.5 senger volumes on all routes. The number of passengers (0.3) million and financial expenses EUR -6.1 (-7.7) million. carried on the Germany–Sweden route decreased by -35%, The Finnlines Group’s result for the reporting period de- on the Finland–Germany route by -53%, and on the creased by EUR 28.6 million to EUR 69.7 million. Finland–Sweden route by -68%. In total, 501,000 passen- Its i not surprising that the pandemic affected our 2020 gers travelled with us in 2020. bottom line, but still the results we posted in such a difficult For decades, we have ensured that there is enough sea year are proof that our strategy is paying off. freight capacity and that cargo transports are functioning to and from Finland. Despite ensuring Finland’s emergency Increasing efficiency securityf o supply, we have not received maritime financial The pandemic has increased uncertainty in global economy support from the State. The terms of both NESA’s EUR 45 and still there are no major signs of recovery. The pandemic million aid and Traficom’s EUR 24.7 million aid were such has affected our operations, but to mitigate the financial that we are not allowed to receive any aid because our fi- risk, we initiated a cost saving plan as early as April 2020. nancial result has remained profitable. Finnlines’ turnover Despite the many challenges of 2020, we managed to main- and profitability has also declined due to economic slow- tain the profitability of our operations. down and uncertain market conditions during the corona We remain focused on the fundamentals which are dedi- pandemic, yet we are excluded from receiving any maritime cation to smart use of technology, digitalised and optimised aid. processes across all of our operations, investments in en-

EBITDA and Interest-bearing Debt and Net Debt/ Net gearing Equity Ratio Shareholders Equity EBITDA Development

EUR million % EUR million EUR million % 180 60 800 500 4 90 700 150 50 400 600 3 120 40 60 500 300 90 30 400 2 300 200 60 20 30 200 1 30 10 100 100 0 0 0 0 0 0 716 1 18 19 20 716 1 18 19 20 716 1 18 19 20 716 1 18 19 20

EBITDA Interest-bearing debt, Net debt Equity Ratio excluding leasing liabilities Net debt/EBITDA Shareholders equity

Finnlines turnover declined EUR 91 million due to the Covid-19 pandemic lowering our financial result.

6 ergy efficiency to promote sustainability and effectively ex- Superstar ro-pax vessels are set to start operating in ecute our strategy by our highly productive, skilled and 2023. committed employees. All the hard work we have done will increase the efficiency and effectiveness of our processes. Capital structure Over the years, we have made substantial investments in Net cash generated from operating activities remained our existing fleet, both environmental and capacity-related. strong and was EUR 138.0 (173.6) million. The interest- Even in the exceptional situation we are facing, our strategic bearing debt decreased by EUR 40.5 million to EUR 331.7 focus has remained on improving our operational and finan- (372.2) million, excluding leasing liabilities of EUR 17.7 cial position. With the organisational, operational, and fi- (19.3) million. Net interest-bearing debt at the end of the nancial optimisation we have ensured that Finnlines’ ser- period was EUR 329.8 (363.0) million. Net interest-bearing vices have continued unaltered and we are fulfilling our debt/EBITDA (rolling 12 months) ratio amounted to 2.3 (2.1) important role in the logistics chain. The Finnlines Group’s and the equity ratio calculated from the balance sheet was return on capital employed (ROCE) was 7.0% (9.5%). 60.7% (58.5%). Net gearing resulted in 45.5% (50.8%). The Group has financial flexibility through its strong li- Investing for growth and sustainability quidity position which at the end of the period, with cash Environmental responsibility is part of Finnlines’ business and cash equivalents together with unused committed strategy. Reducing fuel consumption and cutting harm- credit facilities, amounted to EUR 226.8 (164.2) million. ful emissions have been key elements of our strategy for a The Finnlines Group has a strong balance sheet, cost-effi- long time. At Finnlines, we are continuously developing our cient operations and unused credit facilities, which all pro- operations and environmental aspects will continue to have vide financial flexibility. Considering Finnlines’ investments a strong impact on all our actions. We will reduce our fleet’s in its energy-efficient fleet, we can expect the Company to carbon dioxide emissions by investing in energy efficiency maintain its strength during this extraordinary period. and green technology and by reducing fuel consumption. Finnlines is fully owned by the Grimaldi Group, which is Our ongoing EUR 500 million newbuilding programme, a multinational integrated logistics company specialising which includes three ultra-green hybrid ro-ro vessels and in the maritime transport of vehicles, rolling cargo, con- two eco-efficient Superstar ro-pax vessels, will further in- tainers and passengers. The shareholder structure rein- crease our energy efficiency and cut emissions. In other forces our strategy and enables us to be the most efficient words, we continue to deploy larger and larger vessels to shipping company in the Baltic Sea. As part of the Group benefit from economies of scale. The significant newbuild- with proven track record in highly profitable operations, ing investment will also give us the flexibility to remove some we have the required financial flexibility to invest close to of the older vessels from the fleet in order to let new units en- EUR 0.5 billion in the ultra-green vessels. In addition, our ter, improving the green footprint of the Finnlines fleet. network has expanded and via the larger Grimaldi Group The environmentally friendly vessels will be built with the network the world is accessible to our customers. latest technology and innovations available. In addition to Finnlines has been, and continues to be, committed to lithium-ion battery systems and shore-side electricity con- secure vital sea transports on market terms. We are proud nections, which enable zero-emission operations in port, that Finnlines’ services in the Baltic and North Sea areas they will be equipped with several advanced technologies provide a backbone in transporting all the necessary to save energy and thus reduce emissions further. goods to Finnish society. The first ro-ro vessel is expected to start operation in 2021, and the other two in the first half of 2022. The Tom Pippingsköld

FINNLINES 2020 7 Business concept, values and strategic goals

Finnlines promotes international commerce by Strategic goals providing efficient, high-quality sea transport and port services, mainly to meet the requirements of Our strategy is to grow together with our customers, the European industrial, commercial and transport to increase the efficiency of the capital employed sectors and private passengers. on our fleet and to continue investing in sustainable Finnlines’ objective is to guarantee long-term development. Four strategic goals steer all our business profitability through high-quality operations, to operations. generate added value for its shareholders and to maintain a healthy capital structure. The Board of A stronger position in the Baltic Sea and the North Directors bases its annual dividend proposal on the Sea cargo traffic Company’s capital structure, future outlook, and • We invest in the operational efficiency of our current investment and development needs. transport areas. • We will open new routes according to market Values opportunities. • We are actively involved in the growing consolidation Customer focus of the sector. Our customers choose us thanks to our • We increase Group-wide network synergies beyond competence, expertise and reliability. Satisfied the core of today. customers are the basis for Finnlines’ enduring success. By identifying its cargo customers’ and A stronger position in the Baltic Sea passenger passengers’ needs, the Company can continuously traffic develop its service products and generate concrete • We offer quick and effortless travel between Finland, added value for its customers. Sweden and Germany to our passengers on our large and efficient ro-pax vessels. Responsibility • We offer the most eco-friendly choice for passengers We adhere to the principles of sustainable to travel between Finland, Sweden and Germany. development. Environmental responsibility forms partf o our Company’s everyday operations. We A stronger position in Russian freight traffic take safety issues into consideration in all our • We are the leading shipping company in transit traffic. operations. • We actively develop and market direct transport routes between Continental Europe and Russian Profitability Baltic ports. We achieve our objectives. Through the quality of our business operations, we are able to guarantee Growing profitability long-term profitability and generate added value. • We strive to improve our productivity. One of the main ways of doing this is to focus on routes where the Employee satisfaction vessels’ capacity utilisation is as high as possible in We are a reliable and motivating employer. We treat both directions. our employees with fairness and equality, rewarding • We will increase the efficiency of our operational the merit. systems and information management with data- driven analysis. • We take proper care of environmental and safety issues. • We invest in staff competence.

8 UN Sustainable Development Goals and Finnlines

Finnlines complies with the principles of sustainable PROFITABILITY ENABLES SUSTAINA- development and takes its social responsibility as well BILITY. We aim for stable profitability. By as economic and environmental aspects into consid- optimising our operations, routes and use eration in all operations. In order to strengthen and of vessels and by focusing on cost control, we are able to further improve our clarify its environmentally responsible work, Finnlines efficiency. Economic well-being is linked has introduced the UN principles of sustainable devel- with social responsibility and the environment. Seventeen opment to its operations and is committed to support- of our vessels sail under the Finnish flag and three under ing these goals in the Company’s operations. the Swedish flag. Environmental and social responsibility is part of the Company’s day-to-day operations. Ambitious goals Finnliness i committed to long-term efforts for the ENVIRONMENTALLY FRIENDLY environment, making investments in energy efficiency TRANSPORT MODE. Sea transport is and eco-efficient services. The Company has worked the most environmentally friendly form of transport, particularly in transporting consistently, setting short-term goals to reach large amounts of cargo. The Finnlines excellent long-term results. Finnlines has reduced ro-pax concept combines cargo and its carbon dioxide emissions by more than 30% passenger traffic in a unique way. In addition, we have compared to 2008. invested in the energy efficiency of our vessels in many In line with the strategy of the UN’s International ways over the last few years and these investments Maritime Organization (IMO), the Company aims to will continue with the newbuilding projects. reduce its absolute carbon dioxide emissions by at least 50% by 2050. SUSTAINABLE CONSUMPTION AND PRODUCTION aim to do more and better Key actions for sustainable future with less energy and investment. Thanks • We will enhance our fleet with five new eco-efficient to our long-term, environment-consid- ships. These ships will reduce the carbon footprint erate actions, investments in energy efficiency and eco-efficient service, we further. are able to advance sustainable development. • We will install ballast water treatment equipment to prevent the spread of harmful aquatic species. CONTINUOUS DEVELOPMENT. At • We will continue to improve fuel efficiency. This Finnlines, we consider it important to means optimisation of schedules and running at op- continuously develop our operations. The timal speed, load and trim. Our professional person- Company aims to reduce environmental nel play a very important role in reaching this goal. effects in both cargo and passenger operations. Substantial investments in energy efficiency and green technologies ECOLOGICALLY AND SOCIALLY is crucial • We have invested over EUR 1 billion in our fleet and RESPONSIBLE BUSINESS to sustainable development and to a operations during the past decade. company’s success in today’s world. • We have installed emission abatement systems to Operating in ecologically sensitive sea remove harmful impurities from the ships’ exhaust areas, our safety and environment policy gases. Other efforts to improve our environmen- aims to produce safe and high-quality services, which take tal performance consisted of changing propeller the environmental effects into account the whole transport blades and rudders. chain throughout a ship’s life-cycle. By continuously inves- • We have lengthened six of our ro-ro vessels and the tigating and testing energy-saving innovations and plan- achieved capacity increase of 30% reduces energy ning better processes, we at Finnlines are doing our part in consumption, as well as emissions, per transported protecting the marine environment of the Baltic Sea area. cargo unit.

FINNLINES 2020 9 Business environment Maritime transport is vital to Finland’s foreign trade, as about 90% of it is shipped by sea. Frequent and regular liner traffic services are of particular importance to processed products, especially in these exceptional circumstances. Finnlines’ business areas include the Baltic Sea, the North Sea and the Bay of Biscay. Digital operations support the business and approximately 65% of freight customer bookings is fully automated. Finnlines’ digital solutions enable efficient business operations and provide relevant data to both the organisation and the Company’s customers.

The conditions for a normal year in shipping were the Baltic Sea and North Sea areas. It offers the wide shaken up in mid-March. But even though one country Grimaldi shortsea and deepsea network for Finnlines’ after another imposed restrictions on the normal daily customers use. life, merchant vessels could not stop sailing. There are no self-sufficient countries, and so shipping must go Finnlines’ fleet on, otherwise societies collapse. This is even more so At the end of 2020, Finnlines owned 21 vessels. The with countries that are dependent on foreign trade. Group’s vessels are among the best that ply the Baltic Though travelling for leisure ceased, there are always Sean i terms of size, efficiency, and carbon footprint. valid reasons to travel, and the goods need to flow. All vessels sailing between Finland and Continental The crisis has affected shipping companies Europey fl the Finnish flag. differently based on their business concept. Being The total capacity of the fleet was approximately less dependent on passengers – important though 73,000 lane metres; 33,000 metres on ro-pax vessels they are in the overall concept – Finnlines was able to and the remaining 40,000 on ro-ro vessels. maintain both the route network and the frequency at The average age of the Group’s vessels was about the level established at the beginning of the year. 15 years. The overall outlook remains still uncertain. Very much depends on how long it takes to bring the Fleet renewal pandemic under control, and how swiftly the economy Finnlines continues to deploy larger and larger vessels and various business sectors recover, and how in both the ro-pax and ro-ro segments, thus creating employment develops. better economies of scale. Three new ro-ro vessels The extent and effects of Britain’s exit from the under construction will add 17,500 lane metres to single market still remain to be seen. They will be Finnlines’ services. Furthermore, the Company has negative, however, with the degree varying depending ordered two eco-friendly Superstar ro-pax vessels. on the final rift. With a cargo capacity of 5,100 lane metres and passenger capacity of 1,100, they will be Finnlines’ Operating areas flagships both in terms of size and technology. Maritime transport is vital to Finland’s foreign trade, The hybrid ro-ro vessels are expected to start especially in extraordinary circumstances. Finnlines operation in 2021–2022. The Superstar ro-pax vessels operates in the Baltic Sea, the North Sea, and the are expected to be delivered by 2023. Bayf o Biscay, reflecting the main areas of the Finnish These major investments will keep Finnlines running foreign trade. The Group’s route network covers all onef o the most modern, efficient, and ecological major Finnish ports as well as several main ports in fleets in the Baltic and North Sea areas.

10 Vital sea transports between Finland, Continental Europe and Great Britain

FINNLINES 2020 11 12 Shipping and sea transport services Finnlines’ strong position derives from excellent services and a product concept tailored to its customers’ needs. Finnlines’ high frequency of departures, cargo capacity and information services contribute flexibility, reliability and predictability to customers’ transport plans. The Company transports today a third of the 1 million trucks carrying goods between Finland, Sweden and Continental Europe every year. Freight services include the Baltic and North Sea Services, HansaLink, NordöLink, FinnLink and Finnlines RUS service.

During 2020, with only minor fine-tuning of the sched- NordöLink ules, Finnlines maintained the traffic plan created at Finnlines’ route between Malmö, Sweden and the start of the year. This was a major contribution to Travemünde, Germany offers 19 weekly departures in Finland’s security of supply. both directions. The average intake capacity is equal to The overall volumes did drop in spring, up to more than 1,100 cargo units per day. 10–20% depending on the line, but they were on the Finnlines’ high-frequency service with the right mend after the summer. The intention is to preserve cargo capacity and fast nine-hour voyage ensures the the high level of service to ensure customer confi- kind of efficiency required by professional cargo trans- dence and cargo flows. The Shipping and Sea portation and any intermodal solutions. Despite the Transport Services segment’s revenues totalled EUR pandemic outbreak, the service was running regularly, 461.8 (550.9 in 2019) million, and it employed 1,244 without disruptions, throughout the year and with the (1,274) people on average. highest level of punctuality. During January–December, the transports totalled The NordöLink service is operated with three ro-pax about 723,000 (738,000) cargo units, 154,000 vessels, MS Europalink, MS Finnpartner and MS (166,000) cars (not including passengers’ cars) and Finntrader. 1,107,000 (1,113,000) tons of non-unitised freight. In addition, some 501,000 (665,000) private and com- FinnLink mercial passengers were transported. Finland’s most important sea bridge for the security of supply is Finnlines’ Kapellskär–Långnäs–Naantali The Baltic Sea and North Sea services route. The service is operated with two ro-pax vessels, Finnlines’ ro-ro services in the Baltic Sea and North the Star class vessel MS Finnswan and the Clipper Sea areas provide a backbone to Finnish industries’ class vessel MS Finnfellow. transportation needs. Routes are ideally located for These vessels serve the freight industry by providing serving freight customers in the Baltic Sea and the a daily capacity of more than 650 cargo units, which North Sea. Traffic was operated with some ten modern would be sufficient to cover all the lorry and trailer traf- ro-ro vessels catering for lorries, trailers, other mobile fic volumes crossing between Sweden and Finland. cargo, containers, and break bulk. Due to the Covid-19 pandemic, Finnlines’ passenger volume decreased between Finland and Sweden by al- HansaLink most 70%, while on the other hand, the service has HansaLink consists of three Star class ro-pax vessels proved its full reliability to an even bigger share of the plying between Helsinki and Travemünde. Despite the freight trade between the two countries. unprecedented challenge posed by the Coronavirus pandemic, the traffic ran without interruptions provid- Finnlines RUS service ing seven reliable weekly departures in both direc- The service is made up of two loops. The Biscay– tions, with a fast and efficient sailing time of less than Russia one offers a connection from Bilbao, Zeebrugge 30 hours. and Antwerp to Port Bronka, Paldiski and Helsinki. Due to the pandemic, passenger volumes fell by On the eastbound voyage the vessels call at Kotka on almost 50% vs. 2019, but regardless the line retained their o way t Tilbury and Zeebrugge, whereas the TRE and even strengthened its position as the largest service connects Lübeck and Travemünde to Port carrier of unitised cargo volumes between Germany Bronka and Kotka on the return voyage. and Finland. For passengers, it remains the only direct Both services are operated with modern ro-ro connection by sea between Finland and Continental vessels designed for loading ro-ro, containers, project Europe. cargo as well as cars and vans on dedicated decks.

FINNLINES 2020 13 High-quality services even in the most difficult of times

Passenger services With its eight ro-pax vessels, operating between six ports in three countries, Finnlines has upheld its position as an important provider of passenger services in the Baltic Sea.

Steady and strong in times of turbulence added in all our customer service points on land and Finnlines has provided a constant, sustainable and re- at sea. sponsible way of travel throughout the Covid-19 crisis. The Company’s ro-pax service concept guarantees Adding value stabilityy b combining cargo and passenger traffic. The Investments in the current ro-pax fleet continued high utilisation rates on the routes and vessels ensure despite the challenging times. On the Finland– fast connections between Continental and Northern Germany route, the hiatus in leisure travellers was Europe. The ro-pax routes also offer convenient and usedo t renew some cabin and corridor flooring, reliable services for passengers, especially for those furniture and furnishings. looking to travel with their own vehicles. At Finnlines, digital revolution is a desired and shared vision that transcends traditional roles like Decline on all ro-pax routes sales, marketing and customer service. The Company The impact of the coronavirus outbreak on consumer continued its technological transformation process by purchasing and travel behaviour can be seen in the kicking off a user interface redesign project to better passenger figures. The total number of passengers serve its online business to consumer customers. carried on all routes (private and commercial) Finnlines is also currently upgrading its business-to- decreased by 25% to 501,000 passengers (665,000 in business booking portal. Both projects aim at 2019). The number of private passengers decreased providing a better overall booking experience and on all routes. The lowest decrease was seen on the building an even stronger online presence. Germany–Sweden route, at -35%, followed by the Finland–Germany route -53% and the Finland–Sweden Finnlines’ Next Generation ro-pax vessels route -68%. Despite the challenges caused by the pandemic, Finnlines moves strongly forward with refining its More space and safety newbuilding vessels concept. Green values are a Travel with Finnlines is safe. During these exceptional staple in the Company’s values, but their role will be times, we take care of the health and safety of our further emphasised with the Next Generation vessels; passengers and crew. Finnlines’ spacious vessels recycled and ecological material choices will be carry 500 passengers at a maximum, providing ample considered in all the design aspects. A new digital space onboard, which makes it easy to comply with service concept for the Company will be introduced the safety regulations during the voyage. In addition together with the new vessels. The development work to following the guidelines and instructions set by for this will fully start in the coming year. the health authorities, extra cleaning measures were

14 FINNLINES 2020 15 16 Port operations The Finnlines Group’s Port Operations are handled by Finnsteve companies (Finnsteve, Containersteve and FS-Terminals). Finnsteve companies is a major port operator focused on unitised cargo services required by regular liner traffic in the ports of Helsinki, Turku and Naantali. Helsinki is Finland’s most important export and import port for unitised goods, while Turku and Naantali have the fastest sea connections to Sweden.

In 2020, Finnlines’ Port Operations generated revenues the depth of the fairway from 11 metres to 13 metres, of EUR 42.8 (45.4 in 2019) million and employed 290 thus enabling bigger ships to access the harbour. (302) people on average. The Company’s four post-Panamax container A new ERP system for unitised cargo was gantry cranes have sufficient capacity and power to introduced at the beginning of 2018, and a new HR cope easily with future growth in container volumes. and equipment resources management system during The export and import terminals allow cargo handling 2020. The systems increase the efficiency of the in all weather conditions. operations and improve the operational reliability. The overall cargo volumes handled by Finnsteve In 2020, more energy-efficient solutions were companies in the Vuosaari Harbour increased from the developed in the Port Operations, with special previous year. attentiono t the utilisation rate of the container fleet. Port operations in Turku and Naantali Port Operations in Helsinki The Company operates mainly in Turku’s West The Vuosaari Harbour, which was opened at the end Harbour. In addition, it has operations in the Base of 2008, has proved to be an efficient world-class Harbour and in the port of Naantali. port with its modern and advanced infrastructure. The Company’s Naantali operations provided The operations of the harbour are being constantly serviceso t the Group’s FinnLink traffic between developed, and a considerable fairway deepening Naantali, Långnäs and Kapellskär. project was launched in 2020. The project will increase

FINNLINES 2020 17 Continued investments in green innovations to achieve sustainability

18 Environment and safety Finnlines’ ships operate in ecologically sensitive sea areas where many environmental regulations are stricter than globally. Finnlines is committed to the UN Sustainable Development Goals to minimise the use of natural resources and to combat climate change and its impact. Economic profitability facilitates investments in innovations and responsible operations.

Sea transport is an efficient mode of transport, par- the MARPOL Convention. Globally, the sulphur limit ticularly when large volumes are carried over long decreased from 3.5% to 0.5% at the beginning of distances. Ro-pax vessels offer customers an oppor- 2020. Finnlines was well prepared as nearly all our tunity to carry goods and travel in a more responsible ships are equipped with sulphur emission abatement manner than other modes of transport. technology. Our ships also abide by the 0.10 rule when operating on the Biscay route outside the Emission Air emissions Control Area. Finnlines operates mainly in the Emission Control In 2020, ships’ sulphur dioxide emissions declined Areas, i.e., the Baltic Sea, the North Sea and the by around 40% compared with 2019. English Channel, where the sulphur content limit for fuel oil has been 0.10% from 2015 in accordance with >>

FINNLINES 2020 19 Environment and safety (continued)

The IMO has set the target to cut greenhouse gas emis- In 2020, Finnlines’ vessel traffic consumed 317,885 tons sions from shipping by 50% by 2050. Fuel consumption per of heavy fuel oil and diesel oil, representing a decrease of cargo tons carried and nautical miles sailed should de- nearly% 3 compared with 2019. The Company fleet has cut crease by 40% by 2030 and by 70% by 2050. All target fig- its CO2-emissions by more than 30% since 2008. ures are compared with the 2008 level. The North Sea and the Baltic will constitute a nitrogen To reach these ambitious goals, the shipping sector will oxide (Nox) Emission Control Area (NECA) starting 1 have to consider transition to alternative carbon-neutral fu- January 2021. The NOx limit will apply to new-build vessels els and to adoption of new technologies. The industry dis- and NOx emissions will reduce by 80% compared with the cusses marked-based measures, such as emissions trade, present level. operational measures to restrict coal intensity and expan- sionf o the energy efficiency design index to cover existing Safety and security ships. The land-based ship management organisation and all Finnlines invests in sustainability on its new vessels, for the ships are certified in accordance with the ISM Code instance, by installing solar panels, a high-powered battery (International Management Code for the Safe Operation of bank, an air lubrication system, and shore-side electricity. Ships and for Pollution Prevention). All ships and port facili- Installation of a shore-side connection on existing ro-pax ties also comply with the requirements of the ISPS Code vessels has also been studied. Furthermore, Finnlines has (International Ship and Port Facility Security Code). investigated new alternative fuels together with an engine Technical progress, such as digitalisation, integration manufacturer. and automation, brings a risk of malicious attacks to ships’

20 Shipowners have had to report on ships’ fuel consumption, Environmental aspects, subsequent CO2 emissions and transport work to the European Commission as from 2018 in accordance with an expectations and EU directive. Globally, IMO’s Data Collection System started in 2019 and the first reports were submitted during the requirements are springf o 2020. An accredited, impartial verifier validates the data in both systems. considered at every To ensure safe and environmentally sound recycling of stage of a ship’s ships, the Hong Kong Convention has been adopted within IMO, but the Convention has not yet been ratified. This is life-cycle. why the EU has adopted a regulation on ship recycling and inventory of hazardous materials, like mercury, cadmium and lead. During 2020, hazardous materials experts took samples to identify the presence of hazardous material control systems. Therefore, IMO requires that ship owners contained in the equipment, systems and areas onboard. identify cyber security objectives relevant for the safe According to the regulation, an inventory shall be main- operation of the ship. Cyber risks should be appropriately tained throughout the operational life of the ship. addressed in safety management systems no later than the first annual verification of the Company’s Document of Ballast water management Compliance after 1 January 2021. Ballast water is used to trim and stabilise ships, but it may The ships are regularly inspected and audited by the carry harmful aquatic species and out-compete native spe- maritime administration, classification societies and by in- cies, disrupting fragile marine ecosystems. The IMO Ballast house auditors. Regular drills are held both internally and Water Management Convention entered into force in 2017 with authorities, such as the coast guard, border guard and and ships must be fitted with treatment equipment during a local city rescue departments. transitional period. Finnlines has started with installations, In ports, stevedoring companies have safety systems, which will be completed in 2023. including communication and contingency plans in case of an accident. Ports are equipped to respond to fires and oil Other environmental aspects and chemical spills. Oily wastewater, ‘bilge water’, is generated in engine rooms. Bilge water is separated in separators and the remaining Environmental certification sludge is always taken ashore. The limit for the oil content The environmental management system, which complies of water that may be discharged into the sea is 15 ppm but with the ISO 14001:2015 standard, was audited in the of- manyf o our ships have more efficient separators. Some fice and onboard ships. Certification covers management bilge water is also pumped ashore. and manning of all ships sailing under the Finnlines flag MARPOL contains restrictions concerning black water, as well as purchasing, newbuildings, and cargo and ship i.e., toilet water. Finnlines’ ro-pax vessels land black and operations. grey water to onshore municipal sewage systems. Cargo ships are equipped with sewage treatment plants, which Stakeholders have been certified by the administration. MARPOL Annex In environmental and safety matters, Finnlines’ most impor- IV, which regulates prevention of pollution by sewage, is tant stakeholders are the flag and port state administration, being revised and new regulations, including periodic sam- owners, customers, port operators, classification society pling and a Sewage Management Plan, will also concern and contractors, as well as the inhabitants of harbour and existing ships. fairway areas. Finnlines co-operates with waste management compa- Finnlines is represented at the technical, safety and envi- nieso t reuse or recycle waste in an efficient manner and ronmental committees under the Swedish and Finnish waste is reprocessed into material or recovered as energy. Shipowners’ Associations and co-operates with maritime The main waste types generated on board include plastics, colleges and research centres. The Company is an associ- bio waste, glass, paper, cardboard, wood, and metal. ated organisation in the EU flagship project COMPLETE Hazardous waste is separated and taken to a designated (Completing management options in the Baltic Sea Region container in the port. to reduce risk of invasive alien species introduction by shipping). Finnlines has also been involved in the real time algal Environmental aspects in port operations monitoring project, Alg@line, on its Finland-Germany route Finnsteve companies have invested in modern equipment for over 20 years, providing vessels for research purposes. and vehicles, which consume less fuel. The renewed Terminal Operating System has enabled shorter hauling dis- Legislation tances and performance and utilisation rate of equipment IMO manages international legislation on safety and envi- have thus improved. Renewed lighting systems and more ronmental matters. The MARPOL 73/78 Convention con- efficient use of space in buildings have enhanced energy tains regulations on the disposal of waste and sewage and savings. on the prevention of air emissions. The SOLAS Convention Finnsteve companies hold a valid ISO 14 001 environ- regulates maritime safety and security, including ship con- mental certificate and an ISO 9001 quality certificate. struction, life-saving arrangements and navigation. Port op- In 2020, the fuel consumption of the port operations erations comply with national and international legislation. totalled 1,111,603 litres, which includes the operations in Two similar, although separate, regimes have been intro- Helsinki, Turku and Naantali, a decrease of 8% compared duced to reduce the carbon footprint from shipping. with the previous year.

FINNLINES 2020 21 22 Human resources Finnlines is an international company employing over 1,500 people in seven countries. We are a reliable and motivating employer, which treats its employees with fairness and equality.

The global coronavirus pandemic significantly affected Our shore personnel switched promptly and largely all our employee groups’ everyday lives in 2020. The to remote working in March 2020, when the corona precautionary measures taken and changes in day-to- pandemic hit Europe with force. Our software and IT day operations have been very extensive, which has solutions, extensively upgraded in previous years, and required resilience and commitment of our employees other digital tools now proved to be a great support to in adopting new working practices, and also patience the new way of working. and endurance, as the pandemic has dragged on. We are very proud of how well our employees adapted to the situation and quickly adopted new Employee well-being working practices as part of their day-to-day routines. We continued to ensure the wellbeing, safety at work Special thanks are also due to our employees for their and work ability of all our employee groups, with the responsible attitude towards the Covid-19 situation. emphasis now being on needs different from previous Our office staff members also have tasks which can- years in response to the situation. not be performed remotely, and it has therefore been Our sea personnel and port personnel cannot work particularly important that we all act in a responsible remotely, and therefore preventing the pandemic in our way and it is safe to work at our premises. workplaces became our main objective to ensure continued safe operations. It required a wide range of Highly competent employees precautionary measures and adaptations in daily work. As a result of the economic impacts of the pandemic By changing our routines and adopting new working on our business operations, we initiated a savings arrangements, however, we were able to continue our programme, also including personnel costs, in spring operations at sea, in ports and offices without our 2020. The year 2020 was particularly challenging business suffering from these changes. to our passenger services where the effects of the In ports, a new resource management system was pandemic, resulting in reduced workload, were most also introduced, which helped enhance the usability of evident. Our employees have taken a constructive and our employees in a more cross-sectoral way. Thanks solution-oriented approach to adjustment measures to our modernised system, we also achieved consider- and have been willing, on their part, to ensure that de- able improvement in organisation of the work. In addi- spite the exceptional situation, we are able to provide tion, communication regarding job tasks and any our customers with high-quality service. >> changes to them improved.

FINNLINES 2020 23 Human resources (continued)

Despite exceptional times, we have been able to provide Personnel figures the same service level and pursue both our ongoing and new Our Group’s revenue/average number of employees in 2020 projects, for example, on development of information sys- was EUR 316 (365 in 2019) thousand. EBIT/average number tems.e W have also achieved, under the circumstances, of employees was EUR 50 (66) thousand. a very good result, which would not have been possible The Group employed an average of 1,534 (1,576) persons without our highly motivated and competent employees. The during the reporting period, consisting of 849 (869) persons past year hit all our employees hard and required flexibility at sea and 685 (707) persons on shore. The number of per- and tolerance of uncertainty from all of us. We are very sons employed at the end of the period was 1,519 (1,538) in pleased with our employees’ commitment, adaptations total, of which 834 (858) at sea and 685 (680) on shore. made to respond to the changed circumstances, as well as The personnel costs (including social security costs) for all pulling together to especially ensure health security and the reporting period were EUR 83.4 (88.7) million. continued operations.

Key figures 2020 2019 Average number of employees 1,534 1,576 Revenue/employee, EUR 315,505 364,800 Personnel expenses/employee, EUR 54,349 56,305 Result before taxes/employee, EUR 46,050 61,750 Average sickness absence of personnel, day/employee 12.5 11.9 Training days, total 1,096 1,518 Average number of employees per business area Shore-based personnel Shipping and Sea Transport Services 395 405 Port Operations 290 302 Sea personnel 849 869 Group, total 1,534 1,576 On 31 December 2020, the shore- On 31 December 2019, the shore- based personnel amounted to 685 based personnel amounted to 680 and sea personnel to 834, and sea personnel to 858, in total 1,519. in total 1,538.

Employee categories Personnel by country 2020, % as of 31 December 2020, % 2.4% 14% 6.9%

31% 18.6% 72.1% 56%

Shore-based personnel excl. stevedores and foremen Finland Sweden Germany Other Sea personnel Stevedores and foremen

Gender distribution Breakdown by age Average length of employment as of 31 December 2020, % as of 31 December 2020, % as of 31 December 2020, years

100 94% 35 20 18 82% 30 28% 17 80 26% 16 15.7 25 21% 14 60 12 10.9 51% 20 49% 10 15 40 13% 12% 8 10 6 20 18% 4 5 6% 2 0.4 0.7 0.2 0 0 0 Shipping Port Sea 18–29 30–39 40–49 50–59 60– Shipping Port Sea personnel personnel years years years years years personnel personnel

Permanent employment Female Male Temporary employment

24 FINANCIAL STATEMENTS 2020 Board of Directors’ Report

Finnlines’ business Finnlines’ traffic Finnlines is a leading shipping operator of ro-ro and During the reporting period, Finnlines operated on average passenger services in the Baltic Sea, the North Sea and the 19 (20) vessels in its own traffic. Bay of Biscay. The Company’s passenger-freight vessels At the end of March, Covid-19 pandemic started to affect offer services from Finland to Germany and via the Åland negatively on transported volumes, while minor alterations Islands to Sweden, as well as from Sweden to Germany. were made to the number of departures in some routes. Finnlines’ ro-ro vessels operate in the Baltic Sea, the North In the second quarter Finnlines Group chartered MS Sea and the Bay of Biscay. The Company has subsidiaries Fionia Sea, which was deployed part-time in Baltic traffics. or sales offices in Germany, Belgium, Great Britain, The vessel was redelivered back to its owners in the third Sweden, Denmark and Poland, which all are also sales quarter. offices. In addition to sea transportation, the Company The Covid-19 epidemic continued to affect volumes the provides port services in Helsinki and Turku. rest of the year, and especially passenger volumes declined As an agent for Grimaldi Lines and Atlantic Container heavily due to travelling restrictions. Nevertheless, Finnlines Line (ACL) in Finland and Russia, Finnlines connects continued its scheduled liner traffic with all vessels through- Helsinki, St. Petersburg and Paldiski with the Grimaldi out the year. Group network in the Mediterranean, West Africa, as well as The cargo volumes transported during January– the Atlantic coast of both North and South America. December totalled approximately 723 (738 in 2019) thousand cargo units 154 (166) thousand cars (not including passen- Group structure gers’ cars) and 1,107 (1,113) thousand tons of freight not Finnlines Plc is a Finnish public limited company, which possible to measure in units. In addition, some 501 (665) operates under Finnish jurisdiction and legislation. At the thousand private and commercial passengers were end of the reporting period, the Group consisted of the transported. parent company and 19 subsidiaries. Finnlines Plc is fully owned by the Grimaldi Group, which Financial results is one of the world’s largest operators of ro-ro vessels and The Finnlines Group recorded revenue totalling EUR 484.0 the largest operator of the Motorways of the Sea in Europe (574.8) million in the reporting period, a decrease of 16% for both passengers and freight. The Grimaldi Group, head- compared to the same period in the previous year. Shipping quartered in Naples, operates a fleet of more than 130 ves- and Sea Transport Services generated revenue amounting sels and employs approximately 16,000 people. It serves to EUR 461.8 (550.9) million, of which passenger related over 140 ports in 50 countries in the Mediterranean Sea, revenue was EUR 39.0 (59.9) million. The revenue of Port North Europe, West Africa, North and South America. The Operations was EUR 42.8 (45.4) million. Since March 2020 Grimaldi Group comprises seven shipping companies, in- Covid-19 pandemic has affected negatively on cargo and cluding Finnlines, Atlantic Container Line (ACL), Malta passenger volumes. Towards the end of the year transport- Motorways of the Sea (MMS) and Minoan Lines. ed cargo volumes started to recover at almost on last year’s level. Instead the number of private passengers has been General market development significantly lower than in 2019 due to the severe restric- Finnlines’ main operating area connects trade partners tions on leisure travelling throughout the Europe. In Port around Baltic Sea. Based on the OECD Eurostat the change Operations the revenue declined also when the pandemic of Gross Domestic Product in all European countries re- affected on transported goods. The internal revenue mained negative during January–September in comparison between the segments was EUR 20.6 (21.5) million. with 2019. The change of GDP in the third quarter 2020 has Result before interest, taxes, depreciation and amortisa- been positive when compared with the previous quarter. In tion (EBITDA) was EUR 140.8 (169.8) million, a decrease of Germany the reported GDP improved in the third quarter 17%. 2020 by 8.5% compared with the previous quarter of 2020, Result before interest and taxes (EBIT) was EUR 76.2 while in Sweden the corresponding increase was 4.9%. In (104.8) million. In the end of the first quarter Finnlines imple- Finland GDP change in the third quarter was 3.2% com- mented a cost saving plan to mitigate the Covid-19 impact. pared with the second quarter of 2020. (Eurostat 2020.) This plan has been executed successfully during the year. Based on the statistics by Statistics Finland for January– Other operative income includes also a business cost sup- December, the Finnish seaborne imports carried in con- port of EUR 0.5 million paid by Finnish State Treasury. tainer, lorry and trailer units (measured in tons) decreased As a result of the improved financial position, net finan- by 4% and exports decreased by 7%. During the same pe- cial expenses decreased to EUR -5.6 (-7.5) million. Financial riod private and commercial passenger traffic between income was EUR 0.5 (0.3) million and financial expenses Finland and Sweden decreased by 73%. Between Finland EUR -6.1 (-7.7) million. Result before taxes (EBT) decreased and Germany the corresponding traffic decreased by 46%. by EUR 26.6 million and was EUR 70.6 (97.3) million. The (Statistics Finland.) result for the reporting period was EUR 69.7 (98.3) million. The most important business and share related key indicators are presented in the Five-Year Key Figures on page 37.

26 Statement of financial position, financing and The personnel expenses (including social costs) for the cash-flow reporting period were EUR 83.4 (88.7) million. The decrease Interest-bearing debt decreased by EUR 40.5 million to in personnel expenses is due to the effects of the Covid-19 EUR 331.7 (372.2) million, excluding leasing liabilities of on the business and, as a result in strict cost saving plan EUR 17.7 (19.3) million. Net interest-bearing debt at the end including e.g. minimal number of seasonal employees, tem- of period was EUR 329.8 (363.0) million. Net interest- porary lay-offs and other decrease in working hours in sea bearing debt/EBITDA (rolling 12 months) ratio amounted to and shore personnel. 2.3 (2.1) and the equity ratio calculated from the balance sheet was 60.7% (58.5%). Net gearing resulted in 45.5% The Finnlines share (50.8%). Covid-19 pandemic has not affected the availability The Company’s paid-up and registered share capital on or terms of financing. 31 December 2020 totalled EUR 103,006,282. The capital The Group’s liquidity position is strong and at the end of stock consisted of 51,503,141 shares. the period, cash and cash equivalents together with unused Finnlines Plc is fully owned by the Grimaldi Group. committed credit facilities amounted to EUR 226.8 (164.2) The shares and shareholders are dealt with in more million. detail in the Notes to the Consolidated Financial Net cash generated from operating activities remained Statements, in Note 38. Shares and shareholders strong and was EUR 138.0 (173.6) million. Decisions taken by the Annual General Meeting Capital expenditure Finnlines Plc’s Annual General Meeting was held in Helsinki The Finnlines Group’s gross capital expenditure in the re- on 7 May 2020. The Annual General Meeting of Finnlines Plc porting period totalled EUR 50.4 (31.4) million, including approved the Financial Statements and discharged the tangible and intangible assets. Total depreciation and am- members of the Board of Directors and President and CEO ortisation amounted to EUR 64.6 (65.1) million. The invest- from liability for the financial year 2019. The meeting ap- ments consist of normal replacement expenditure of fixed proved the Board of Directors’ proposal to pay a dividend of assets, lengthening of ro-ro vessels, new cargo handling EUR 1.00 per share, resulting in a total amount of dividends equipment, dry-dockings, and prepayments related to three of EUR 51,503,141. green ro-ro newbuildings. The meeting decided that the number of Board Members The Company has continued to invest in sustainability be ten. The meeting re-elected the current board members and environmental technology within its existing fleet. The Christer Backman, Tiina Bäckman, Emanuele Grimaldi, installation of ballast water treatment on ships has started Gianluca Grimaldi, Guido Grimaldi, Mikael Mäkinen, Diego and the project will be completed in the following couple of Pacella, Jon-Aksel Torgersen and Tapani Voionmaa and years. Ballast water is used to trim and stabilise ships, but it elected Esben Poulsson as a new board member for the may carry harmful aquatic species and therefore Finnlines term until the close of the Annual General Meeting in 2021. has decided to install new ballast water systems to its entire The yearly compensation to the Board will remain un- fleet. changed as follows: EUR 50,000 for the Chairman, Finnlines’ EUR 500 million investment, the newbuilding EUR 40,000 for the Vice Chairman, and EUR 30,000 for programme, has proceeded as planned during the year, and each of the other members of the Board. all three new ro-ro vessels are now in production at Nanjing The Annual General Meeting elected KPMG Oy Ab as the Jingling Shipyard in China. The first new green hybrid ro-ro, Company's auditor for the fiscal year 2020. It was decided Finneco I, is scheduled to start operating already in that the external auditors will be reimbursed according to November 2021. The investment includes also two new invoice. Superstar ro-pax vessels which are currently being designed and their construction work is set to start in 2021. Risks and risk management The ro-paxes are expected to be delivered in 2023. The Covid-19 outbreak and the measures taken to prevent Finnlines invests in sustainability on its new vessels, for the spread represent impact on Finnlines’ operations but instance, by installing solar panels, a high-powered battery the Company will maintain the critical sea transportation bank and an air lubrication system. These environmentally connection for Finland. The transportation of medicines, friendly vessels are a significant step towards even a more foodstuff and other essential goods from one country to sustainable and eco-efficient fleet. another is important even and especially in situations like this. Finnlines continues to monitor the situation closely and Personnel acts in accordance to the guidelines and instructions set by The Group employed an average of 1,534 (1,576) persons national and international health authorities. The Company during the reporting period, consisting of 849 (869) persons works hard to ensure its operations continue as normal as at sea and 685 (707) persons on shore. The number of per- possible. For now, there are no changes to the sailing sons employed at the end of the period was 1,519 (1,538) in schedules. Travel restrictions imposed in many countries total, of which 834 (858) at sea and 685 (680) on shore. affect the Company’s business operations. Finnish >>

FINNLINES 2020 27 Board of Directors’ Report (continued)

Government will review its decisions on border traffic present, their outcome is not expected to have any sub- restrictions on regular basis and, if necessary, make new stantial impact on the Group’s profit. decisions. Finnlines is exposed to business risks that arise from the Tonnage taxation capacity of the fleet existing in the market, counterparties, Finnlines Plc entered into the Finnish tonnage taxation prospects for export and import of goods, and changes in regime as from 1 January 2013. In tonnage taxation, the the operating environment. The risk of overcapacity is re- shipping operations transferred from taxation of business duced through scrapping of aging vessels, on the one hand, income to tonnage-based taxation. and the more stringent environmental requirements, on the other. The continuity of operations is ensured by safeguard- Research and development ing critical functions and essential resources. The majority The aim of Finnlines’ research and development work is to of the Group’s non-current assets consist of its fleet. The find and introduce new practical models and operating fleet is always insured to its full value. methods, which enable the Company to meet customer Stricter environmental regulations (e.g. NOx, SOx and requirements in a more sustainable and cost-efficient way.

CO2 emission, wastewater and ballast water regulations) are In 2020, the focus continued to be on environmental invest- the risk factors that could affect the Group’s business. ments in vessels and on improving their energy efficiency. However, through the constant renewal and development of Finnlines’ newbuilding programme continued as planned the fleet, using the latest technology and innovations, during the year. Three highly ecological ro-ro vessels were Finnlines is very well-positioned to greatly mitigate this risk. under construction at Nanjing Jinling shipyard in China at The effect of fluctuations in the foreign trade is reduced the end of the year. In addition to the three hybrid ro-ro ves- by the fact that the Company operates in several geographi- sels, the newbuilding programme includes two ecologically cal areas. This means that slow growth in one country is efficient Superstar ro-pax vessels. compensated by faster recovery in another. Finnlines con- Energy efficiency of the Finnlines fleet will be further im- tinuously monitors the solidity and payment schedules of its proved by utilising the latest technology and environmen- customers and suppliers. Currently, there are no indications tally friendly solutions. Vessels with lithium-ion batteries will of imminent risks related to counterparties but the enable emission free port calls. Modern 2-stroke engines, Company continues to monitor the financial position of its scrubbers, solar panels and innovative air lubrication sys- counterparties. Finnlines holds adequate credit lines to tems will help cutting down the environmental emissions. maintain liquidity in the current business environment. The renewal and development of the online store for con- Finnlines has cash and unused committed credit facili- sumers started in 2020. The aim is to launch a rebuilt and ties over EUR 200 million and the Company initiated cost efficient channel for travel and service products sales dur- saving plans in April 2020, which both enable the Company ing 2021. Customer experience will be enhanced and the to mitigate the negative effects of Covid-19 pandemic. efficiency of the sales channel is planned to improve. The mapping of digital services for freight customers Legal proceedings started in 2020. New digital services are planned to be pub- Finnlines has made an appeal to the Helsinki Administrative lished in 2022. The development of application program- Court of the National Emergency Supply Agency’s decision ming interfaces (API) usage continued during the year. The concerning the compensation of costs for securing mari- first customers started to utilise the data also in production. time transport. Finnlines has also appealed to Market Court The development of an ERP system continued through concerning the Finnish Transport and Communications several different projects. Solutions supporting the vessel Agency's calls for tenders concerning imposing a public loading process were implemented in 2020. A new solution service obligation for the aid of maritime traffic on the for cabin allocation for drivers was developed during the Turku/Naantali–Mariehamn/Långnäs–Stockholm, year and accelerated by the covid-19 pandemic and related Kapellskär–Mariehamn, Naantali–Långnäs, Grisslehamn– precautions. In the new process, all check-in steps are Eckerö and Helsinki–Tallinn routes. In addition, Finnlines completed already onshore while physical contacts with the has made a complaint to the European Commission con- crew and queuing onboard are minimized. Part of the re- cerning Covid-19 situation related selective and discrimina- porting to national authorities was automatized and new tory aid measures launched by the Finnish authorities. ways of working were implemented with German authori- Finnlines is in addition involved in a few legal proceed- ties. The monitoring system for port and stevedoring costs ings and disputes whose outcome cannot be predicted, but was further developed and the implementation for certain taking into account the information that is available at parts is planned to take place in 2021.

28 First solutions utilising Kofax software robotics were samples to identify the presence of hazardous material taken into production in 2020. Analytics and BI solutions contained in the equipment, systems and areas onboard. based on Tableau’s technology were developed and taken To comply with the IMO Ballast Water Management into use as well. Convention, Finnlines has started to install treatment equip- New server technologies and virtualizations improved ment on its ships. Installations will be completed in 2023. the stability of IT systems and decreased the response times. Sustainability reporting In Port Operations, the new resource management sys- Finnlines’ sustainability reporting includes, in addition to tem for machinery and workforce was implemented during financial figures, key indicators related to the employees the year in Helsinki and Turku. The system provides also the and the environment. material for stevedoring payrolls, which benefits certain HR Finnlines’ sustainability reporting is part of the Grimaldi processes at the same time. Group’s Sustainability Report which is available on the Grimaldi Group’s website: www.grimaldi.napoli.it. Environment and safety Finnlines is committed to the UN Sustainable Development Corporate Governance Goals to minimise the use of natural resources and to The Corporate Governance Statement can be reviewed on combat climate change and its impact. Sea transport is an the Company’s website: www.finnlines.com. efficient mode of transport, particularly when large volumes are carried over long distances. Ro-pax vessels offer Events after the reporting period customers an opportunity to carry goods and travel in a There are no significant events to report. responsible manner. Finnlines invests in sustainability on its new vessels, for Outlook and operating environment instance, by installing solar panels, a high-powered battery The year 2020 was extraordinary as the global Covid-19 bank, an air lubrication system, and shore-side electricity. pandemic emerged and affected the market. There is still Installation of a shore-side connection on existing ro-pax uncertainty in the global market, depending on how long it vessels has also been studied. takes to bring the pandemic under control and how swiftly Finnlines operates mainly in the Emission Control Area, the economy recovers. However, Finnlines has succeeded where the sulphur content limit for fuel oil has been 0.10% in maintaining a strong operative performance and a solid from 2015. Globally, the sulphur limit decreased from 3.5% financial position even during the pandemic, which can be to 0.5% at the beginning of 2020. Nearly all Finnlines ships seen in the strong balance sheet. The Company started are equipped with sulphur emission abatement technology. already in April 2020 cost saving measures and continues to Our ships also abide by the 0.10 rule when operating out- improve the efficiency of its operations. This year looks side the Emission Control Area. In 2020 ships’ sulphur promising as there are several improvement initiatives on- dioxide emissions declined by around 40% compared with going, including the delivery of the new large and eco- 2019. efficient ro-ro vessel. It can be expected that the Company In 2020, Finnlines’ vessel traffic consumed 317,885 tons will remain strong as it seems the Finnlines Group’s diverse of heavy fuel oil and diesel oil, representing a decrease of business concept is working. nearly 3% compared with 2019. Finnsteve companies have invested in modern equipment and vehicles and the perfor- Dividend distribution proposal mance and utilisation rate of equipment have thus im- The parent company Finnlines Plc’s result for the reporting proved. In 2020, the fuel consumption of the port operations period was EUR 52.7 million. The distributable funds in- totalled 1,111,603 litres, which includes the operations in cluded in the parent company’s shareholders’ equity equals Helsinki, Turku and Naantali, a decrease of 8% compared to EUR 444,1 million at the end of the reporting period. The with the previous year. Board of Directors proposes to the Annual General Meeting Technical progress involves a risk of malicious attacks to that a dividend of EUR 1.00 per share be paid out resulting ships’ control systems. Therefore, IMO requires that ship in a total amount of proposed dividends of EUR 51,503,141. owners identify cyber security objectives and address cy- According to the consolidated statement of financial ber risks in safety management systems. position, the equity attributable to parent company share- To ensure safe and environmentally sound recycling of holders equals EUR 724.5 (714.6) million at the end of the ships, EU has adopted a regulation on ship recycling and reporting period. inventory of hazardous materials, like mercury, cadmium and lead. During 2020 hazardous materials experts took Naples, 25 February 2021

Finnlines Plc, The Board of Directors

FINNLINES 2020 29 Consolidated Statement of Comprehensive Income, IFRS

EUR 1,000 1 Jan–31 Dec 2020 1 Jan–31 Dec 2019 Revenue 484,016 574,779

Other income from operations 1,303 1,516 Materials and services -137,964 -180,806 Personnel expenses -83,376 -88,714 Depreciation, amortization and impairment losses -64,599 -65,065 Other operating expenses -123,164 -136,956 Total operating expenses -409,104 -471,541 Result before interest and taxes (EBIT) 76,215 104,754

Financial income 494 286 Financial expenses -6,065 -7,746 Result before taxes (EBT) 70,645 97,293

Income taxes -918 964 Result for the reporting period 69,727 98,258

Other comprehensive income Other comprehensive income to be reclassified to profit and loss in subsequent periods: Exchange differences on translating foreign operations -45 34 Fair value change on currency derivates -8,245 6,061 Other comprehensive income to be reclassified to profit and loss in subsequent periods, total -8,290 6,095 Other comprehensive income not being reclassified to profit and loss in subsequent periods: Remeasurement of defined benefit plans -120 -400 Tax effect, net 21 83 Other comprehensive income not being reclassified to profit and loss in subsequent periods, total -100 -317 Total comprehensive income for the reporting period 61,336 104,036

Result for the reporting period attributable to: Parent company shareholders 69,727 98,258 69,727 98,258 Total comprehensive income for the reporting period attributable to: Parent company shareholders 61,336 104,036 61,336 104,036 Result for the reporting period attributable to parent company shareholders calculated as earnings per share (EUR/share) Undiluted / diluted earnings per share 1.35 1.91

Most of the items recognised in the Consolidated Statement of Comprehensive Income fall under the tonnage tax scheme.

This page is an extract of the audited Financial Statements. The complete audited Financial Statements of the Group and the parent company are available at www.finnlines.com. The extracts of the audited Financial Statements presented in the Annual Report should be viewed together with the complete and audited Financial Statements.

30 Consolidated Statement of Financial Position, IFRS

EUR 1,000 31 Dec 2020 31 Dec 2019 ASSETS Non-current assets Property, plant and equipment 967,748 979,741 Goodwill 105,644 105,644 Other intangible assets 3,671 3,958 Other financial assets 7,076 7,072 Receivables 3,929 10,658 Deferred tax assets 2,370 2,940 1,090,438 1,110,013 Current assets Inventories 5,967 6,152 Accounts receivable and other receivables 86,471 86,916 Income tax receivables 32 2 Cash and cash equivalents 1,847 9,208 94,317 102,277

Non-current assets held for sale 14,610 14,610 Total assets 1,199,365 1,226,901

EQUITY Equity attributable to parent company shareholders Share capital 103,006 103,006 Share premium account 24,525 24,525 Translation differences 114 140 Fund for invested unrestricted equity 40,016 40,016 Fair value reserve * 1,378 9,623 Retained earnings 555,413 537,309 724,453 714,620

Non-controlling interests 0 0 Total equity 724,453 714,620

LIABILITIES Long-term liabilities Deferred tax liabilities 46,509 46,423 Pension liabilities 3,331 3,442 Provisions 1,697 1,697 Loans from financial institutions 180,383 219,643 231,920 271,206 Current liabilities Accounts payable and other liabilities 73,798 68,975 Current tax liabilities 27 8 Provisions 220 253 Loans from financial institutions 168,946 171,840 242,992 241,075 Total liabilities 474,912 512,281

Total shareholders’ equity and liabilities 1,199,365 1,226,901

* Fair value reserve consists of fair value of effective part of foreign currency forward contracts, for which hedge accounting is applied.

FINNLINES 2020 31 Consolidated Statement of Changes in Equity, IFRS

EUR 1,000 Equity attributable to parent company shareholders Share issue Translation Unrestricted Fair value Retained Total Share capital premium differences equity reserve reserve earnings equity Reported equity 1 January 2019 103,006 24,525 119 40,016 3,562 490,858 662,087 Comprehensive income for the reporting period: Result for the reporting period 98,258 98,258 Exchange differences on translating foreign operations 21 13 34 Fair value change on currency derivatives 6,061 Remeasurement of defined benefit plans -400 -400 Tax effect, net 83 83 Total comprehensive income for the reporting period 0 0 21 0 6,061 97,954 104,036 Dividend -51,503 -51,503 Equity 31 December 2019 103,006 24,525 140 40,016 9,623 537,310 714,620

EUR 1,000 Equity attributable to parent company shareholders Share issue Translation Unrestricted Fair value Retained Total Share capital premium differences equity reserve reserve earnings equity Reported equity 1 January 2020 103,006 24,525 140 40,016 9,623 537,310 714,620 Comprehensive income for the reporting period: Result for the reporting period 69,727 69,727 Exchange differences on translating foreign operations -26 -19 -45 Fair value change on currency derivatives -8,245 -8,245 Remeasurement of defined benefit plans -120 -120 Tax effect, net 21 21 Total comprehensive income for the reporting period 0 0 -26 0 -8,245 69,609 61,336 Dividend -51,503 -51,503 Equity 31 December 2020 103,006 24,525 114 40,016 1,378 555,413 724,453

32 Consolidated Statement of Cash Flows, IFRS

EUR 1,000 1 Jan–31 Dec 2020 1 Jan–31 Dec 2019 Cash flows from operating activities Result for reporting period 69,727 98,258 Adjustments: Non-cash transactions 64,167 64,408 Unrealised foreign exchange gains (-) / losses (+) Financial income and expenses 5,568 7,461 Taxes 918 -964 Changes in working capital: Change in accounts receivable and other receivables -66 18,481 Change in inventories 185 1,586 Change in accounts payable and other liabilities 3,674 -8,024 Change in provisions -143 151 Interest paid -3,589 -5,714 Interest received 50 35 Taxes paid -252 -225 Other financing items -2,209 -1,845 Net cash generated from operating activities 138,030 173,609

Cash flows from investing activities Investments in tangible and intangible assets -50,401 -31,357 Sale of tangible assets 126 252 Proceeds from sale of non-controlling interests 0 287 Net cash used in investing activities -50,275 -30,818

Cash flows from financing activities Loan withdrawals 54,000 76,000 Net increase in current interest-bearing liabilities (+) / net decrease (-) -2,973 0 Repayment of loans -91,204 -156,948 Payment of lease liabilities -3,427 -2,983 Dividends paid -51,503 -51,503 Net cash used in financing activities -95,108 -135,434

Change in cash and cash equivalents -7,353 7,356 Cash and cash equivalents 1 January 9,208 1,850 Effect of foreign exchange rate changes -8 2 Cash and cash equivalents 31 December 1,847 9,208

FINNLINES 2020 33 Profit and Loss Account, Parent Company, FAS

EUR 1 Jan–31 Dec 2020 1 Jan–31 Dec 2019 Revenue 372,129,761.63 452,614,147.37

Other income from operations 3,477,580.02 3,271,886.40

Materials and services -132,277,081.64 -170,488,845.38 Personnel expenses -41,593,449.39 -45,189,675.88 Depreciation, amortisation and other write-offs -33,380,705.01 -33,289,780.55 Other operating expenses -112,218,664.47 -122,481,919.37 Operating profit 56,137,441.14 84,435,812.59

Financial income and expenses -4,166,014.50 -4,282,005.22

Result before appropriations and taxes 51,971,426.64 80,153,807.37

Appropriations Group contributions -2,100,000.00 -2,300,000.00 Profit before tax 49,871,426.64 77,853,807.37

Income taxes -8,074.48 0.00 Deferred taxes 2,889,513.31 3,917,030.83 Other direct taxes -88,370.98 -82,586.41

Result for the reporting period 52,664,494.49 81,688,251.79

34 Balance Sheet, Parent Company, FAS

EUR 31 Dec 2020 31 Dec 2019 ASSETS

Non-current assets Intangible assets 2,381,950.51 2,652,638.38 Tangible assets 659,627,257.76 649,785,989.43 Investments Shares in group companies 153,454,336.86 153,454,336.86 Other investments 7,051,920.55 7,051,920.55 Total non-current assets 822,515,465.68 812,944,885.22

Current assets Inventories 4,896,931.41 5,083,275.71 Long-term receivables 62,544,312.18 100,407,357.08 Short-term receivables 86,527,559.32 92,405,494.66 Bank and cash 1,102,924.76 8,383,032.69 Total current assets 155,071,727.67 206,279,160.14

Total assets 977,587,193.35 1,019,224,045.36

SHAREHOLDERS’ EQUITY AND LIABILITIES

Shareholders’ equity Share capital 103,006,282.00 103,006,282.00 Share premium account 24,525,353.70 24,525,353.70 Fair value reserve 1,378,287.63 9,623,322.09 Unrestricted equity reserve 40,882,508.10 40,882,508.10 Retained earnings 351,077,461.36 320,892,350.57 Result for the reporting period 52,664,494.49 81,688,251.79 Total shareholders’ equity 573,534,387.28 580,618,068.25

Statutory provisions Pension obligation 562,000.00 588,000.00

Liabilities Long-term liabilities Deferred tax liability 11,970,828.18 14,860,341.49 Interest-bearing 162,783,221.09 197,559,444.08 174,754,049.27 212,419,785.57 Current liabilities Interest-bearing 172,192,864.62 174,547,027.88 Interest-free 56,543,892.18 51,051,163.66 228,736,756.80 225,598,191.54

Total liabilities 403,490,806.07 438,017,977.11

Total shareholders’ equity and liabilities 977,587,193.35 1,019,224,045.36

FINNLINES 2020 35 Cash Flow Statement, Parent Company, FAS

EUR 1 Jan–31 Dec 2020 1 Jan–31 Dec 2019 Cash flows from operating activities Result for the reporting period 52,664,494.49 81,688,251.79

Adjustments for: Depreciation, amortisation & impairment loss 33,380,705.01 33,289,780.55 Gains (-) and Losses (+) of disposals of fixed assets and other non-current assets -172,637.94 -192,450.15 Financial income and expenses 4,166,014.50 4,282,005.22 Income taxes -2,793,067.85 -3,834,444.42 Other adjustments 2,100,000.00 2,300,000.00 89,345,508.21 117,533,142.99 Changes in working capital: Change in inventories, addition (-) and decrease (+) 186,344.30 1,684,313.93 Change in accounts receivable, addition (-) and decrease (+) -1,097,592.57 18,501,750.36 Change in accounts payable, addition (+) and decrease (-) 4,207,034.87 -9,938,292.40 Change in provisions -26,000.00 21,000.00 3,269,786.60 10,268,771.89

Interest paid -3,864,195.58 -5,630,146.77 Dividends received 0.00 261.52 Interest received 1,625,298.84 2,647,415.37 Other financing items -2,077,997.14 -1,666,284.15 Income taxes paid -96,445.46 -82,586.41 -4,413,339.34 -4,731,340.44

Net cash generated from operating activities 88,201,955.47 123,070,574.44

Cash flows from investing activities Investments in tangible and intangible assets -42,510,426.68 -25,566,452.97 Proceeds from sale of tangible and intangible assets 163,066.75 136,990.15 Purchase of investments 0.00 287,000.00 Change in internal loans (net) 37,701,854.90 47,247,952.52 Net cash used in investing activities -4,645,505.03 22,105,489.70

Net cash before financing activities 83,556,450.44 145,176,064.14

Cash flows from financing activities Proceeds from short-term borrowings 546,008.63 1,279,714.73 Repayment of short-term borrowings -3,003,203.01 -14,723,265.50 Proceeds of long-term borrowings 54,000,000.00 76,000,000.00 Repayment of long-term borrowings -88,776,222.99 -146,442,889.62 Dividends paid -51,503,141.00 -51,503,141.00 Group contributions -2,100,000.00 -2,300,000.00 Net cash used in financing activities -90,836,558.37 -137,689,581.39

Change in cash and cash equivalents -7,280,107.93 7,486,482.75 Cash and cash equivalents on 1 January 8,383,032.69 896,549.94 Cash and cash equivalents on 31 December 1,102,924.76 8,383,032.69

36 Five-Year Key Figures, IFRS

EUR million 2017 2020 2019 2018 restated 2016 Revenue 484.0 574.8 589.4 536.3 473.7 Other income from operations 1.3 1.4 6.4 2.6 6.7 Result before interest, taxes, depreciation and amortisation (EBITDA) 140.8 169.8 166.4 152.3 139.1 % of revenue 29.1 29.5 28.2 28.4 29.4 Result before interest and taxes (EBIT) 76.2 104.8 104.9 93.9 81.5 % of revenue 15.7 18.2 17.8 17.5 17.2 Result before taxes (EBT) 70.6 97.3 94.8 82.4 67.0 % of revenue 14.6 16.9 16.1 15.4 14.1 Result for reporting period, continuing operations 69.7 98.3 95.1 82.6 68.1 % of revenue 14.4 17.1 16.1 15.4 14.4 Result for reporting period 69.7 98.3 95.1 82.6 68.1 % of revenue 14.4 17.1 16.1 15.4 14.4 Total investments * 50.6 31.4 134.0 48.9 46.3 % of revenue 10,5 5.5 22.7 9.1 9.8 Return on equity (ROE), % 9.7 14.3 14.9 13.7 11.9 Return on investment (ROI), % 7.0 9.5 9.6 8.7 7.4 Assets total 1,199.4 1,226.9 1,245.9 1,205.9 1,205.4 Equity ratio, % 60.7 58.5 53.3 51.1 48.9 Net gearing, % 45.5 50.8 68.1 68.9 83.8 Average no. of employees 1,534 1,576 1,637 1,651 1,653

2020 2019 2018 2017 2016 Earnings per share (EPS), EUR 1.35 1.91 1.85 1.60 1.32 Earnings per share (EPS) less warrant dilution, EUR 1.35 1.91 1.85 1.60 1.32 Shareholders’ equity per share, EUR 14.1 13.88 12.86 11.94 11.42 Payout ratio, % n/a n/a n/a n/a n/a Effective dividend yield, % n/a n/a n/a n/a n/a Price/earnings ratio (P/E) n/a n/a n/a n/a n/a Adjusted average number of outstanding shares (1,000) 51,503 51,503 51,503 51,503 51,503 Adjusted number of outstanding shares 31 Dec (1,000) 51,503 51,503 51,503 51,503 51,503 Number of outstanding shares at year-end (1,000) 51,503 51,503 51,503 51,503 51,503

* Includes continuing and discontinuing operations.

Calculation of key ratios is presented on page 38.

FINNLINES 2020 37 Calculation of Key Ratios, IFRS

Result attributable to parent company shareholders Earnings per share (EPS), EUR = Weighted average number of outstanding shares

Shareholders’ equity attributable to parent company shareholders Shareholders’ equity per share, EUR = Undiluted number of shares at the end of period

Dividend paid for the year x 100 Payout ratio, % = Result before tax +/– non-controlling interests of Group result +/– change in deferred tax liabilities – taxes for the period

Dividend per share Effective dividend yield, % = x 100 Share price on stock exchange at the end of period

Share price on stock exchange at the end of period P/E ratio = Earnings per share

Result for the reporting period Return on equity (ROE), % = x 100 Total equity (average)

Result before tax + interest expense + other liability expenses Return on investment (ROI), % = x 100 Assets total – interest-free liabilities (average)

Interest-bearing liabilities* – cash and bank equivalents Net gearing, % = x 100 Total equity

Total equity Equity ratio, % = x 100 Assets total – received advances

Net Debt Net debt to EBITDA ratio = EBITDA past 12 months

* Not including leasing liabilities.

The recognised income taxes are based on the year’s estimated average income tax rate which is expected to realise during the entire reporting period.

Finnlines Plc’s Shipping and Sea Transport Services transferred to tonnage-based taxation in January 2013.

38 Quarterly Data, IFRS

EUR million Q1/2020 Q1/2019 Q2/2020 Q2/2019 Q3/2020 Q3/2019 Q4/2020 Q4/2019 Revenue by segment Shipping and Sea Transport Services total 124.7 131.8 100.4 151.9 121.2 149.1 115.4 118.1 Sales to third parties 124.8 131.9 100.5 152.0 121.3 149.2 115.5 118.2 Sales to Port Operations -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 Port Operations total 10.9 11.0 10.4 12.0 10.6 11.5 10.9 10.9 Sales to third parties 5.7 5.7 5.3 6.0 5.5 6.1 5.4 5.8 Sales to Shipping and Sea Transport Services 5.2 5.4 5.1 6.0 5.1 5.4 5.5 5.1 Group internal revenue -5.1 -5.3 -5.0 -6.0 -5.1 -5.3 -5.4 -5.0 Revenue total 130.5 137.6 105.8 157.9 126.7 155.3 120.9 124.0

Result before interest and taxes per segment Shipping and Sea Transport Services 21.5 18.1 11.4 32.0 23,0 35.9 16.6 16.5 Port Operations 0.6 0.0 0.8 0.6 1.4 1.4 0.9 0.3 Result before interest and taxes (EBIT) total 22.1 18.1 12.2 32.6 24.5 37.2 17.5 16.8

Financial income and expenses -1.5 -2.1 -1.4 -1.9 -1.5 -1.8 -1.2 -1.6 Result before tax (EBT) 20.6 16.0 10.7 30.7 23.0 35.4 16.3 15.2 Income taxes 0.1 0.3 0.2 -0.3 -0.5 -0.3 -0.8 1.3 Result for the reporting period 20.7 16.2 11.0 30.4 22.5 35.1 15.6 16.5

Quarterly consolidated key figures Result before interest and taxes, (% of revenue) 16.9 13.1 11.5 20.7 19.3 24.0 14.5 13.6 Earnings per share, EUR 0.40 0.32 0.21 0.59 0.44 0.68 0.30 0.32 Average number of outstanding shares (1,000) 51,503 51,503 51,503 51,503 51,503 51,503 51,503 51,503

FINNLINES 2020 39 Board’s Proposal For the Use of the Distributable Funds and Signatures to the Board of Directors’ Report and to the Financial Statements

Distributable funds included in the parent company’s shareholders’ equity on 31 December 2020: Retained earnings EUR 351,077,461.36 Unrestricted equity reserve EUR 40,882,508.10 Business cost support EUR -500,000.00 Result for the reporting period EUR 52,664,494.49 Distributable funds total EUR 444,124,463.95

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 1.00 per share be paid out resulting in a total amount of proposed dividends of EUR 51,503,141.

Naples, 25 February 2021

Jon-Aksel Torgersen Chairman of the Board

Christer Backman Tiina Bäckman Gianluca Grimaldi

Guido Grimaldi Mikael Mäkinen Diego Pacella

Esben Poulsson Tapani Voionmaa

Emanuele Grimaldi President and CEO

THE AUDITOR’S NOTE Our auditor’s report has been issued today.

Helsinki, 25 February 2021

KPMG Oy Ab

Kimmo Antonen Authorized Public Accountant

40 Auditor’s Report

This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.

To the Annual General Meeting of Finnlines Oyj and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland Report on the audit of the Financial Statements and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible Opinion for such internal control as they determine is necessary to We have audited the financial statements of Finnlines Oyj enable the preparation of financial statements that are free (business identity code 0201153-9) for the year ended from material misstatement, whether due to fraud or error. 31 December, 2020. The financial statements comprise the In preparing the financial statements, the Board of consolidated balance sheet, statement of comprehensive Directors and the Managing Director are responsible for income, statement of changes in equity, statement of cash assessing the parent company’s and the group’s ability to flows and notes, including a summary of significant ac- continue as a going concern, disclosing, as applicable, mat- counting policies, as well as the parent company’s balance ters relating to going concern and using the going concern sheet, income statement, statement of cash flows and basis of accounting. The financial statements are prepared notes. using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group In our opinion or cease operations, or there is no realistic alternative but • the consolidated financial statements give a true and fair to do so. view of the group’s financial position, financial performance and cash flows in accordance with International Auditor’s responsibilities for the audit of the Financial Financial Reporting Standards (IFRS) as adopted by the Statements EU Our objectives are to obtain reasonable assurance about • the financial statements give a true and fair view of the whether the financial statements as a whole are free from parent company’s financial performance and financial material misstatement, whether due to fraud or error, and to position in accordance with the laws and regulations issue an auditor’s report that includes our opinion. governing the preparation of financial statements in Reasonable assurance is a high level of assurance, but is Finland and comply with statutory requirements. not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material mis- Basis for opinion statement when it exists. Misstatements can arise from We conducted our audit in accordance with good auditing fraud or error and are considered material if, individually or practice in Finland. Our responsibilities under good auditing in the aggregate, they could reasonably be expected to in- practice are further described in the Auditor’s fluence the economic decisions of users taken on the basis Responsibilities for the Audit of the Financial Statements of the financial statements. section of our report. We are independent of the parent As part of an audit in accordance with good auditing company and of the group companies in accordance with practice, we exercise professional judgment and maintain the ethical requirements that are applicable in Finland and professional skepticism throughout the audit. We also: are relevant to our audit, and we have fulfilled our other ethi- • Identify and assess the risks of material misstatement of cal responsibilities in accordance with these requirements. the financial statements, whether due to fraud or error, We believe that the audit evidence we have obtained is suf- design and perform audit procedures responsive to ficient and appropriate to provide a basis for our opinion. those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The Responsibilities of the Board of Directors and the risk of not detecting a material misstatement resulting Managing Director for the Financial Statements from fraud is higher than for one resulting from error, as The Board of Directors and the Managing Director are re- fraud may involve collusion, forgery, intentional omis- sponsible for the preparation of consolidated financial state- sions, misrepresentations, or the override of internal ments that give a true and fair view in accordance with control. International Financial Reporting Standards (IFRS) as adopt- • Obtain an understanding of internal control relevant to ed by the EU, and of financial statements that give a true the audit in order to design audit procedures that are

FINNLINES 2020 41 appropriate in the circumstances, but not for the pur- Other reporting requirements pose of expressing an opinion on the effectiveness of the parent company’s or the group’s internal control. Other information • Evaluate the appropriateness of accounting policies The Board of Directors and the Managing Director are re- used and the reasonableness of accounting estimates sponsible for the other information. The other information and related disclosures made by management. comprises the report of the Board of Directors. Our opinion • Conclude on the appropriateness of the Board of on the financial statements does not cover the other Directors’ and the Managing Director’s use of the going information. concern basis of accounting and based on the audit evi- In connection with our audit of the financial statements, dence obtained, whether a material uncertainty exists our responsibility is to read the other information and, in related to events or conditions that may cast significant doing so, consider whether the other information is materi- doubt on the parent company’s or the group’s ability to ally inconsistent with the financial statements or our knowl- continue as a going concern. If we conclude that a mate- edge obtained in the audit, or otherwise appears to be ma- rial uncertainty exists, we are required to draw attention terially misstated. Our responsibility also includes in our auditor’s report to the related disclosures in the considering whether the report of the Board of Directors financial statements or, if such disclosures are inade- has been prepared in accordance with the applicable laws quate, to modify our opinion. Our conclusions are based and regulations. on the audit evidence obtained up to the date of our au- In our opinion, the information in the report of the Board ditor’s report. However, future events or conditions may of Directors is consistent with the information in the finan- cause the parent company or the group to cease to con- cial statements and the report of the Board of Directors has tinue as a going concern. been prepared in accordance with the applicable laws and • Evaluate the overall presentation, structure and content regulations. of the financial statements, including the disclosures, If, based on the work we have performed, we conclude and whether the financial statements represent the un- that there is a material misstatement of the report of the derlying transactions and events so that the financial Board of Directors, we are required to report that fact. We statements give a true and fair view. have nothing to report in this regard. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activi- Other opinions ties within the group to express an opinion on the con- We support that the financial statements should be adopt- solidated financial statements. We are responsible for ed. The proposal by the Board of Directors regarding the the direction, supervision and performance of the group use of the profit shown in the balance sheet is in compli- audit. We remain solely responsible for our audit opinion. ance with the Limited Liability Companies Act. We support that the Members of the Board of Directors and the We communicate with those charged with governance re- Managing Director should be discharged from liability for garding, among other matters, the planned scope and tim- the financial period audited by us. ing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify Helsinki 25 February 2021 during our audit. KPMG OY AB

Kimmo Antonen KHT

Auditors’ report issued for the Board of Directors’ report and Financial Statements for the year ended on 31 December 2020 is available at www.finnlines.com.

42 Finnlines Plc Corporate Governance Statement

Finnlines Plc applies the guidelines and provisions of the Gianluca Grimaldi, Guido Grimaldi, Mikael Mäkinen, Diego Finnish Limited Liability Companies Act and its own Articles Pacella, Jon-Aksel Torgersen and Tapani Voionmaa and of Association. Finnlines also applies the Finnish Corporate elected Esben Poulsson as a new board member for the Governance Code for listed companies entered into force term until the close of the Annual General Meeting in 2021. on 1 January 2020 with regard to Finnlines’ Corporate The yearly compensation to the Board will remain un- Governance Statement for the financial period ended on changed as follows: EUR 50,000 for the Chairman, EUR 31 December 2020. The Code is publicly available at 40,000 for the Vice Chairman, and EUR 30,000 for each of www.cgfinland.fi. This Corporate Governance Statement the other members of the Board. has been approved by Finnlines’ Board. The Annual General Meeting elected KPMG Oy Ab as the Company's auditor for the fiscal year 2020. It was decided Tasks and responsibilities of governing bodies that the external auditors be reimbursed according to Management of the Finnlines Group is the responsibility of invoice. the Board of Directors elected by the General Meeting as well as of the President and CEO appointed by the Board of Board of Directors Directors. Their duties are for the most part defined by the Responsibility for the management of the Company and Finnish Limited Liability Companies Act. Day-to-day opera- proper organisation of its operations lies with the tional responsibility lies with the members of the Extended Company’s Board of Directors, which has at least five (5) Board of Management supported by the relevant staff and and at most eleven (11) members. The members of the service functions. Board are appointed by AGM for one year at a time. The majority of the directors shall be independent of the General Meeting of Shareholders Company and at least two of the directors representing this The ultimate decision-making body in the Company is the majority shall be independent from significant shareholders General Meeting of Shareholders. It resolves issues as de- of the Company. Information on the Board composition, fined for the General Meeting in the Finnish Limited Liability Board members and their independence can be found on Companies’ Act and the Company’s Articles of Association. Finnlines’ website. The President and CEO is a member of These include approving the financial statements, deciding the Board. on the distribution of dividends, discharging the Company’s The proposal for the Board composition shall be includ- Board of Directors and CEO from the liability for the finan- ed in the notice of AGM. The names of candidates for mem- cial year, appointing the Company’s Board of Directors and bership of the Board of Directors, put forward by the Board auditors and deciding on their remuneration. of Directors or by shareholders with a minimum holding of A General Meeting of Finnlines Plc is held at least once a 10% of the Company’s voting rights, are published in the year. The Annual General Meeting (AGM) must be held no notice of the AGM, provided that the candidates have given later than the end of June. The notice to the Shareholders’ their consent to the election. The candidates proposed Meeting shall be given no earlier than three (3) months thereafter shall be disclosed separately. before the Shareholders’ Meeting and no later than one (1) The Board elects a chairman and a deputy chairman week before the Shareholders’ Meeting. from among its members. The Board steers and supervises the Company’s operations, and decides on policies, goals Annual General Meeting 2020 and strategies of major importance. The principles applied Finnlines Plc’s Annual General Meeting was held in Helsinki by the Board in its regular work are set out in the Rules of on 7 May 2020. The Annual General Meeting of Finnlines Plc Procedure approved by the Board. The Board handles all approved the Financial Statements and discharged the issues in the presence of the entire Board. The Board does members of the Board of Directors and President and CEO not have any separate committees. The Board considers all from liability for the financial year 2019. The meeting ap- the matters stipulated to be the responsibility of a board of proved the Board of Directors’ proposal to pay a dividend of directors by legislation, other provisions and the Company’s EUR 1.00 per share, resulting in a total amount of dividends Articles of Association. Due to the limited extent of the of EUR 51,503,141. Company’s business, it is considered effective that the en- The meeting decided that the number of Board Members tire Board also handles the duties of the audit committee, be ten. The meeting re-elected the current board members the nomination committee as well as those of the remunera- Christer Backman, Tiina Bäckman, Emanuele Grimaldi, tion committee.

FINNLINES 2020 43 Corporate Governance Statement (continued)

The main duties and working principles drawn up by the • Gianluca Grimaldi, born 1955, Degree in Economics and Board are: Commerce, President of Grimaldi Group S.p.A., • the annual and interim financial statements attended meetings: 6/6 • the matters to be put to General Meetings of • Guido Grimaldi, born 1983, Degree in Economics, MBA, Shareholders Corporate Short Sea Shipping Commercial Director, • appointment and dismissal of the President and CEO, Grimaldi Group, attended meetings: 6/6 the Deputy CEO, if any, and the members of the • Mikael Mäkinen, born 1956, Master of Science, Executive Committee Engineering, Chairman of the Board, Valmet Corporation, • approval of internal supervision and organisation of the attended meetings: 6/6 Company’s financial supervision • Esben Poulsson, born 1948, Diploma in Business • other matters related to the duties of the audit committee Administration, Chairman & CEO, Enesel Pte. Ltd., mentioned in the Finnish Corporate Governance Code attended meetings: 5/5 • approval of the Group’s strategic plan and long-term • Tapani Voionmaa, born 1951, Master Mariner, LL.M., Post goals Graduate Diplomas, Finnlines Group’s Senior Advisor • approval of the Group’s annual business plan and since 3 February 2020, attended meetings: 6/6 budget • decisions concerning investments, acquisitions, or di- During 2020, Finnlines Plc’s Board of Directors held 6 vestments that are significant or that deviate from the meetings. Group’s strategy • decisions on raising long-term loans and the granting of The present Board of Directors can be found on Finnlines’ website: security or similar collateral commitments www.finnlines.com/company > About us > Organization & Management • risk management principles • the Group’s organisational structure • approval of the remuneration and pension benefits of the Independence of the Board of Directors President and CEO, the Deputy CEO, if any, and the Five members, Christer Backman, Tiina Bäckman, Mikael members of the Executive Committee Mäkinen, Esben Poulsson and Jon-Aksel Torgersen, are • monitoring and assessment of the performance of the independent of the Company and of the major sharehold- President and CEO. ers. Gianluca Grimaldi is independent of the Company but not of its major shareholders. Gianluca Grimaldi and In addition to matters requiring decisions, Board meet- Emanuele Grimaldi are shareholders of Grimaldi Group ings are given updates on the Group’s operations, financial S.p.A. and in addition the Board has, based on an overall position and risks. analysis, considered that Guido Grimaldi (the son of The Board of Directors reviews its operations and work- Emanuele Grimaldi) and Diego Pacella (spouse of share- ing methods annually. The Board convenes 6–8 times a holder) through the said relationships are non-independent year following a predetermined schedule. In addition to of the major shareholders due to family relationship. these meetings, the Board convenes as necessary. Emanuele Grimaldi and Tapani Voionmaa are dependent of the Company as Mr Grimaldi works as President and CEO Board of Directors 2020 and Mr Voionmaa works as the Group’s Senior Advisor of In 2020, the Board consisted of ten members: the Company since 3 February 2020. • Jon-Aksel Torgersen, Chairman of the Board, born 1952, MBA, Advisor to the Board, Astrup Fearnley AS, President and CEO and Deputy CEO attended meetings: 6/6 The Board of Directors appoints a President for the Group • Diego Pacella, Vice Chairman of the Board, born 1960, who is also its Chief Executive Officer. The President and Degree with honours in Mech. Eng., Managing Director CEO is in charge of the day-to-day management of the of Grimaldi Group S.p.A., attended meetings: 6/6 Company and its administration in accordance with the • Christer Backman, born 1945, M.Pol.Sc., attended Company’s Articles of Association, the Finnish Limited meetings: 6/6 Liability Companies Act and the instructions of the Board of • Tiina Bäckman, born 1959, Master of Laws, Chairman of Directors. He is assisted in this work by the Executive the Board of Pension Foundation of Rautaruukki, Committee. The current President and CEO of the Company attended meetings: 6/6 is Mr Emanuele Grimaldi (born 1956, Degree in Economics • Emanuele Grimaldi, born 1956, Degree in Economics and Commerce, University of Naples, Italy). He does not and Commerce, Managing Director of Grimaldi Group receive any compensation or other benefit in the form of S.p.A., President and CEO of Finnlines Plc, attended salary, bonus or pension benefit from the Company. meetings: 6/6 The Board of Directors appoints, if necessary, a Deputy CEO. The Company has no Deputy CEO at present.

44 Executive Committee and Board of Management Remuneration in 2020 The members of the Executive Committee are appointed by The annual remuneration for the Board of Directors in 2020 the Board of Directors. The Executive Committee convenes was EUR 50,000 for the Chairman, EUR 40,000 for the Vice regularly, and is chaired by the President and CEO. The Chairman and EUR 30,000 for the other Board members. Executive Committee supports the President and CEO in The remuneration of the Board of Directors has remained his duties in implementing Group-level strategies and the same as from 2008. guidelines, in coordinating the Group’s management, in finding practical solutions for reaching the targets deter- A detailed specification of the management contracts, salaries, mined by the Board, and in supervising the Company’s remuneration and benefits paid in 2020 is given in the Financial Statements of 2020, Transactions with Related Parties, and in Finnlines’ Remuneration operations. Statement 2020 on Finnlines’ website: The Company has a Board of Management, headed by www.finnlines.com/company > About us > Corporate Governance > the President and CEO, which consists of the members of Compensation the Executive Committee and the heads of functions and Line Managers as well as heads of the main agencies. The heads of functions are responsible for the sales volumes Internal audit and profitability of their respective units. The Board of The Group’s internal audit is handled by the Company’s Management supports the Executive Committee in their Internal Audit unit, which reports to the President and CEO. work upon request. The purpose of the Internal Audit is to analyse the The Company has an Extended Board of Management, Company’s operations and processes and the effectiveness headed by the President and CEO, which comprises, in and quality of its supervision mechanisms. The unit assists addition to the Board of Management, heads of other agen- Finnlines to accomplish its objectives by bringing a system- cies, the Company's internal auditor, as well as Junior atic, disciplined approach to evaluate and improve the ef- Managers. The Extended Board of Management convenes fectiveness of the internal control and governance process- regularly to discuss operative issues related to the Group es. The Internal Audit unit carries out its task by determining business and service products. whether the Company’s risk management, internal control The retirement age of the members of the Extended and governance processes, as designed and represented Board of Management is based on local laws and there are by the management, are adequate and functioning in a no special pension schemes in place. manner to ensure that: • Risks are appropriately identified and managed. • Interaction with the various governance groups occurs Information on the members of the Executive Committee, the Board of Management, and the Extended Board of Management, including their as needed. areas of responsibility, is given on Finnlines' website: • Significant financial, managerial and operating www.finnlines.com/company > About us > Organization & Management information is accurate, reliable and timely. • Employees’ actions are in compliance with policies, standards, procedures and applicable laws and Compensation regulations. The remunerations paid to the members of the Board of • Resources are acquired economically, used efficiently Management, and the principles underlying it, are deter- and adequately protected. mined by the Board of Directors. • Programmes and plans are properly implemented and The members of the Extended Board of Management are objectives are achieved. included in a bonus scheme which is decided by the Board • Quality and continuous improvement are fostered in the of Directors on a yearly basis. The Board of Directors also Company’s internal control processes. decides on any separate performance-based compensa- • Significant legislative or regulatory issues impacting the tion schemes for the management. Company’s internal controls are recognised and The bonuses are paid in cash. There are no other bonus addressed appropriately. schemes. The Internal Auditor prepares an annual plan using an appropriate risk-based methodology and taking into consideration potential risks or control concerns identified by

FINNLINES 2020 45 Corporate Governance Statement (continued)

the management. The scope of the audits within a fiscal The Corporate Legal Affairs and Insurance unit is re- year is planned so that it is representative and the focus is sponsible for risks associated with the Company’s noncur- set on the business areas with the highest risk potentials. rent assets and any interruptions in operations, as well as The plan is approved by the President and CEO. The for the management and coordination of the Group’s insur- Internal Auditor also carries out special tasks assigned by ance policies. The majority of the Group’s non-current as- the Chairman, the President and CEO or the Board of sets consists of its fleet. The fleet is always insured to its full Directors. value. The financial position and creditworthiness of the The Internal Auditor conducts the internal audits inde- Group’s customers are monitored continuously in order to pendently from operational units. In his auditing work, the minimise the risk of customer credit losses. auditor complies with the corporate governance, ethical Each business unit has a responsible controller who re- principles, policies and other guidelines of the Company. ports to the head of the relevant business unit and to the The audit reports are sent to the President and CEO and Group CFO. The heads of Finnlines’ business units are re- the CFO. The President and CEO and the CFO have at least sponsible for the profit and working capital of their units. once a year a closed session with the Internal Auditor about They set the operational targets for their units and ensure the results of the conducted audits and the plans for the that resources are used efficiently and that operations are next period. Relevant issues are also brought to the atten- evaluated and improved. tion of the Board of Directors. Finnlines’ most important strategic, operative and financial risks are Risk management described in the Financial Statements 2020, Financial Risk Management. Internal control in Finnlines is designed to support the Company in achieving its targets. The risks related to achievement of the targets need to be identified and evalu- Internal control over the financial reporting ated in order to be able to manage them. Thus, identifica- Monitoring is a process that assesses the quality of tion and assessment of risks is a prerequisite for internal Finnlines’ system of internal control and its performance control in Finnlines. over time. Monitoring is performed both on an ongoing ba- Internal control mechanisms and procedures provide sis, and through separate evaluations including internal, management with the assurance that the risk management external and quality audits. The business unit is responsible actions are carried out as planned. Conscious and carefully for ensuring that relevant laws and regulations are complied evaluated risks are taken in selecting strategies, e.g. in ex- with in their respective responsibility areas. panding business operations, in enhancing market position The Internal Audit function assists the President and and in creating new business. CEO and the Board of Directors in assessing and assuring Financial, operational and damage/loss risks are avoided the adequacy and effectiveness of internal controls and risk or reduced. The continuity of operations is ensured by safe- management by performing regular audits in the Group’s guarding critical functions and essential resources. Crisis legal entities and support functions according to its annual management, continuity and disaster recovery plans are plan. Finnlines’ external auditor and other assurance pro- prepared. The costs and resources involved in risk manage- viders such as external quality auditors conduct evaluations ment are in proportion to the obtainable benefits. of the Company’s internal controls. The Board of Directors of Finnlines is responsible for The Company’s financial performance is reviewed at defining the Group’s overall level of risk tolerance and for each Board meeting. The Board reviews all interim and an- ensuring that Finnlines has adequate tools and resources nual financial reports before they are released. The effec- for managing risks. The President and CEO, with the assis- tiveness of the process for assessing risks and the execu- tance of the Executive Committee, is responsible for organ- tion of control activities are monitored continuously at ising and ensuring risk management in all Finnlines’ various levels. This involves reviews of results in compari- operations. son with budgets and plans. Responsibility for maintaining Responsibilities for the Group’s working capital, invest- an effective control environment and operating the system ments, financing, finances, human resources, communica- for risk management and internal control of financial report- tions, information management and procurement are cen- ing is delegated to the President and CEO. The internal con- tralised to the head office of the Company. The Group’s trol in the Company is based on the Group’s structure, payment transactions, external and internal accounting are whereby the Group’s operations are organised into two managed centrally by the Financial Department, which re- segments and various business areas and support func- ports to the CFO. The Group’s foreign exchange and inter- tions. Group functions issue corporate guidelines that stip- est exposure is reviewed by the Board of Directors in each ulate responsibilities and authority, and constitute the con- budgeting period. External long-term loan arrangements trol environment for specific areas, such as finance, are submitted to the Board of Directors for approval. accounting, and investments, purchasing and sales.

46 The Company has a compliance programme. Standard Insider management requirements have been defined for internal control over Finnlines’ shares or other securities are not listed. financial reporting. The management expects all employees Therefore, Finnlines does not apply MAR or other regula- to maintain high moral and ethical standards and those ex- tions applicable to inside information relating to listed pectations are communicated to the employees through issuers. internal channels. The Group Finance & Control unit monitors that the fi- Related party transactions nancial reporting processes and controls are being fol- The Company will assess and monitor transactions carried lowed. It also monitors the correctness of external and in- out with related parties and ensure that any conflicts of ternal financial reporting. The external auditor verifies the interests will be appropriately considered in the Company’s correctness of external annual financial reports. decision-making in accordance with the applicable The Board monitors the statutory audit of the financial provisions of the Limited Liability Companies Act. The statements and consolidated financial statements, evalu- Company maintains a list of related parties in its Group ates the independence of the statutory auditor or audit firm, administration. particularly the provision of related services to the The Company provides information on related party Company and prepares the proposal for resolution on the transactions according to the Limited Liability Companies election of the auditor. Act and regulations governing the preparation of the finan- The Board reviews annually the description of the main cial statements in the review by the Board of Directors and features of the internal control and risk management sys- notes to the financial statements. tems in relation to the financial reporting process, which is included in this Corporate Governance Statement. External audit The Company has one auditor which shall be an auditing Information management firm authorised by the Central Chamber of Commerce. The An effective internal control system needs sufficient, timely auditor is elected by the Annual General Meeting to audit and reliable information to enable the management to follow the accounts for the ongoing financial year and its duties up the achievement of the Company’s objectives. Both fi- cease at the close of the subsequent Annual General nancial and non-financial information is needed, relating to Meeting. The auditor is responsible for auditing the consoli- both internal and external events and activities. dated and parent company’s financial statements and ac- Information management plays a key role in Finnlines’ counting records, and the administration of the parent com- internal control system. Information systems are critical for pany. On closing of the annual accounts, the external effective internal control as many of the control activities are auditor submits the statutory auditor’s report to the programmed controls. Company’s shareholders, and also regularly reports the The controls embedded in Finnlines’ business processes findings to the Board of Directors. An auditor, in addition to have a key role in ensuring effective internal control in fulfilling general competency requirements, must also com- Finnlines. Controls in the business processes help ensure ply with certain legal independence requirements guaran- the achievement of all the objectives of internal control in teeing the execution of an independent and reliable audit. Finnlines, especially those related to the efficiency of operations and safeguarding Finnlines’ profitability and reputa- Auditor in 2020 tion. Business units and IT management are responsible for In 2020, the Annual General Meeting elected KPMG Oy Ab ensuring that in their area of responsibility the defined as the Company’s auditor for the fiscal year 2020. Kimmo Group-level processes and controls are implemented and Antonen, APA, has been appointed the head auditor. It was complied with. Where no Group-level processes and con- decided that the external auditors be reimbursed according trols exist, business units and IT management are responsi- to invoice. In 2020, EUR 125 thousand was paid to the audi- ble for ensuring that efficient business level processes with tors in remuneration for the audit of the consolidated, par- adequate controls have been described and implemented. ent company and subsidiary financial statements. During The proper functioning of Finnlines’ information systems the same year, EUR 36 thousand was paid for consulting is guaranteed through extensive and thorough security pro- services not related to auditing. grams and emergency systems. Communications The principal information on Finnlines’ administration and management is published on the Company’s website. All press releases are published on the Company’s website as soon as they are made public.

FINNLINES 2020 47 Board of Directors

Jon-Aksel Torgersen Emanuele Grimaldi • Commission for Short Sea Lines of Confitarma (Italy’s Shipowners Association), President Chairman of the Board • Member of Finnlines Board since 2006 • Federazione del Mare – Italian Maritime Cluster • Member of Finnlines Board since 2007 • President and CEO of Finnlines Plc since Counsel, Board Member • Independent of the Company and major 2013 • Confindustria - General Confederation of shareholders • Grimaldi Group S.p.A., Managing Italian Industry - Maritime and Logistics • Chairman of the Board since 2013 Director Economy, Technical Group Member • ICS (International Chamber of Shipping) Short • Astrup Fearnley AS, Advisor to the • Grimaldi Deep Sea S.p.A., Board Sea Panel, Member Board Member • Parthenope University of Naples, Board • Born 1952, Master in Business • Grimaldi Euromed S.p.A., President and • Aspen, Member Administration, University of St.Gallen, Managing Director • Advisory Board VolaNapoli Onlus, Member • Fondazione Grimaldi Onlus, Foundation, Board Switzerland • Born 1956, Degree in Economics and Member Current positions Commerce, University of Naples, Italy • Honorary President of the Association “Un • Atlantic Container Line AB, Chairman • General Certificate of Education Calcio per Tutti Onlus” • Awilco LNG ASA, Board Member (scientific studies), Military School • Transportation Recovery Fund,L.P. Board Nunziatella in Naples, Italy Mikael Mäkinen Member and Member of the Investment Committee • Honoured as Commander of the Order • Member of Finnlines Board since 2018 • Chairman and Board Member of a number of of the Lion of Finland in 2018 • Independent of the Company and major private companies Current positions shareholders • Minoan Lines, Greece, President • Born 1956, Master of Science, Helsinki Diego Pacella • Malta Motorways of the Sea Ltd, President University of Technology • Atlantic Container Line AB, Board Member Current positions Vice Chairman of the Board • International Chamber of Shipping, Vice • Member of Finnlines Board since 2007 Chairman • Valmet Corporation, Chairman of the Board • Independent of the Company • European Community Shipowners’ • Aker Arctic, Chairman of the Board • Grimaldi Deep Sea S.p.A., President & Associations, Past President and Board Member Esben Poulsson * Managing Director • Interferry Inc, Board Member • Grimaldi Group S.p.A., Managing • Member of Finnlines Board since 2020 Director • Independent of the Company and major Gianluca Grimaldi shareholders • Grimaldi Euromed S.p.A., Managing • Member of Finnlines Board since 2007 Director • Chairman & CEO, Enesel Pte. Ltd., • Independent of the Company Singapore • Born 1960, Degree in Mechanics • Grimaldi Group S.p.A., President Engineering, University of Naples, Italy • Born 1948, Diploma in Business • Grimaldi Deep Sea S.p.A., Board Administration, British Columbia Current positions Member Institute of Technology - Vancouver, • Minoan Lines, Greece, Board Member • Grimaldi Euromed S.p.A., Board • Malta Motorways of the Sea Ltd, Board B.C., Canada Member Member Current positions • Atlantic Container Line AB, Board Member • Born 1955, Degree in Economics and • Tamar Ship Management Ltd., Hong Kong, • Wallhamn AB, Board Member Commerce, University of Naples, Italy Chairman • Marittima Spedizioni srl, President • Honoured as “Cavaliere del Lavoro” in • Cambiaso Risso Asia Pte. Ltd, Singapore, • Finance Committee of Confitarma, Member 2014 Chairman • Epic Gas Ltd., Singapore, Board Member Christer Backman Current positions • Nordic Shipholding A/S, Copenhagen, Board • Minoan Lines, Greece, Board Member • Member of Finnlines Board since 2012 Member • Malta Motorways of the Sea, Board Member • Batchfire Resources Pty. Ltd., Brisbane, Board • Independent of the Company and • Atlantic Container Line AB, Board Member Member major shareholders • Antwerp Euro Terminal n.v. – Antwerp • X-Press Feeders Ltd., Singapore, Senior • Born 1945, Master of Political Sciences, (Belgium), President Advisor to the Chairman Åbo Akademi University • Maritime & Port Authority of Singapore, Board Guido Grimaldi Member • Member of Finnlines Board since 2017 • International Chamber of Shipping, London, Tiina Bäckman Chairman • Member of Finnlines Board since 2012 • Independent of the Company • Independent of the Company and major • Born 1983, Degree in Economics, Tapani Voionmaa shareholders University Federico II of Naples, Italy • Member of Finnlines Board since 2019 • Pension Foundation of Rautaruukki and MBA Master “Automotive Logistics” • Independent of the major shareholders (SSAB), Chairman of the Board of ECG Academy (European Vehicle • Finnlines Group’s Senior Advisor • Born 1959, Master of Laws LL.M., Logistics Association) • Secretary to the Board of Directors until University of Lapland • Corporate Commercial Director of 26 February 2020 Current positions Grimaldi Short Sea Shipping • Born 1951, Master Mariner, LL.M., • OP Bank of Helsinki, Board Member and Board • President of the agencies Grimaldi University of Helsinki, Post Graduate Audit Committee Member Sardegna & Grimaldi Catania Diplomas, King’s College, London • Nordlab laboratory consortium (Pohjois- • Valencia Terminal Europa, Board Current positions Suomen laboratoriokeskus), Board Member Member • Partnera (Oulun Puhelin) Oyj Pension • Maritime Foundation (Merenkulun säätiö), foundation, Chairman of the Board • Grimaldi Marangolo Terminal Catania, Chairman of the Board • Finland Chamber of Commerce, Redemption Board Member • Finnish Shipowners’ Association, Helsinki, Board Member • Grimaldi Logistica Genova, Board Chairman of the Board until 26 November 2020 • Finnish Medical Foundation, Advisory Board Member Member • Grimaldi Maroc, Board Member • Grimaldi Tunis, Board Member *Member of the Board since 7 May 2020. Current positions • ALIS, Logistic Association of Sustainable More information on the members of the Intermodality, President Board at www.finnlines.com

48 Executive Committee

Emanuele Grimaldi Staffan Herlin Antonio Raimo • President and CEO of Finnlines Plc • Head of Group Marketing, Sales and • Line Manager NordöLink, FinnLink since 2013 Customer Service and Russia • Member of the Executive Committee • Line Manager Germany, North Sea • Member of the Executive Committee since 2012 ro-ro since 2013 • Born 1956, Degree in Economics and • Member of the Executive Committee • Born 1975, M.Sc. (Banking and Commerce, University of Naples, Italy since 2013 Economics), Master in Business • General Certificate of Education • Born 1958, M.Sc. (Econ.) Administration (scientific), Military School Nunziatella, Naples, Italy Mikael Lindholm Kielo Vesikko • Head of Newbuilding Department • Head of Passenger Services Thomas Doepel • Member of the Executive Committee • Line Manager HansaLink & Hanko/ •OO C since 2013 Helsinki–Rostock • Head of Ship Management • Born 1958, Master Mariner, Business • Member of the Executive Committee • Head of Purchasing, Port Cost Control management education since 2013 & Equipment • Born 1957, Diploma in Translation • Member of the Executive Committee Tom Pippingsköld since 2013 •FO C Tapani Voionmaa* • Born 1974, M.Sc. (Econ.), Master • Member of the Executive Committee • Group General Counsel of Finnlines Mariner, Executive MBA in Shipping since 2013 Plc until 3 February 2020 and Logistics (Copenhagen Business • Born 1960, B.Sc., MBA • Finnlines Group’s Senior Advisor since School) 3 February 2020 • Member of the Executive Committee since 2013 • Born 1951, Master Mariner, LL.M., Pg Dipl

Board of Management (in addition to the Executive Committee) Uwe Bakosch, Managing Director, Finnlines Deutschland GmbH Domenico Ferraiuolo, Head of Port Operations Agnieszka Walenciak, Line Manager Hanko–Gdynia Kimmo Kostia, Head of Group IT, Hardware Santeri Laakso, Head of Group Finance Jan Laurell, Head of Group HR Mervi Pyökäri, Head of Legal, Insurance and Claims Sanna Simpanen-Mäenpää, Head of Group Analytics & Business Controlling Kristiina Uppala, Head of Customer Service, Passenger Services Vesa Vähämaa, Head of Group IT, Software Extended Board of Management (in addition to the Board of Management) Luc Hens, Managing Director, Finnlines Belgium N.V. Merja Kallio-Mannila, Head of Sales & Customer Service Finland; Deputy Head of Group Sales, Marketing & Customer Service Rafal Kwapisz, Managing Director, Finnlines Poland Kimmo Lehtinen, Deputy Head of Port Operations, Finnsteve Blasco Majorana, Traffic Manager, North Sea Torsti Muuri, Traffic Manager, Baltic Sea * Member until 28 February 2021. Rune Nielsen, Managing Director, Finnlines Denmark A/S ** ** Member since 1 October 2020. Brian Rolfe, Managing Director, Finnlines UK Limited Torkel Saarnio, Line Manager Helsinki–Aarhus; Deputy Line Manager of More information on the members of the HansaLink, Hanko/Helsinki–Rostock; Head of Truck and Trailer Segment Management at www.finnlines.com

FINNLINES 2020 49 Developing the fleet towards sustainable future

Finnlines fleet 31 December 2020

RO-PAX VESSELS

Finnmaid (2006) Finnstar (2006) Finnlady (2007) Finnswan (2007) Length, o.a. (m) 218.8 Breadth, moulded (m) 30.5 DWT metric tons 9,043 / 9,061 / 8,840 / 8,870 GT 45,923 Total lane length (m) 4,215 Passengers 554 Speed (knots) 22 Ice Class 1A Super

Europalink (2007) Length, o.a. (m) 218.8 Breadth, moulded (m) 30.5 DWT metric tons 8,757 GT 46,119 Total lane length (m) 4,215 Passengers 554 Speed (knots) 22 Ice Class 1A Super Finnpartner (1995 / 2007) Finntrader (1995 / 2007) Finnclipper * (1999) Length, o.a. (m) 183.0 Finnfellow (2000) Breadth, moulded (m) 28.7 Length, o.a. (m) 188.3 DWT metric tons 9,088 / 9,132 Breadth, moulded (m) 28.7 GT 33,313 DWT metric tons 7,209 / 7,267 Total lane length (m) 3,050 GT 33,958 / 33,724 Passengers 280 Total lane length (m) 3,079 / 3,099 Speed (knots) 21 Passengers 440 Ice Class 1A Super Speed (knots) 22 Ice Class 1A

50 RO-RO VESSELS

Finnbreeze (2011/2018) Finnsea** (2011/2018) Finnsky (2012/2018) Finnsun (2012/2018) Finntide (2012/2017) Finnwave (2012/2018) Length, o.a. (m) 217.8 Breadth, moulded (m) 26.5 DWT metric tons 14,500 GT 33,816 Total lane length (m) 4,192 Speed (knots) 21 Ice Class 1A

Finnmerchant (2003) Length, o.a. (m) 193.0 Breadth, moulded (m) 26.0 DWT metric tons 13,106 GT 23,235 Total lane length (m) 2,606 Speed (knots) 18 Ice Class 1A

Finnmill (2002 / 2009) Finnpulp (2002 / 2009) Length, o.a. (m) 187.06 Breadth, moulded (m) 26.5 DWT metric tons 11,744 / 11,682 GT 25,732 Total lane length (m) 3,259 Speed (knots) 20 Ice Class 1A

Finnkraft (2000) Finnhawk (2001) Length, o.a. (m) 162.5 Breadth, moulded (m) 20.6 DWT metric tons 9,041 / 9,035 GT 11,671 Total lane length (m) 1,853 Speed (knots) 20 Finnlines has a fleet of 21 vessels in its Ice Class 1A Super ownership.

Finnmaster (1998) * Under bareboat charter to an external party. ** Under bareboat charter to the Grimaldi Length, o.a. (m) 154.5 Group in 2020. Breadth, moulded (m) 22.7 DWT, metric tons 8,647 DWT: Deadweight Tonnage (sea water density GT 12,433 1,025 kg/m3) Total lane length (m) 1,775 Speed (knots) 20 GT: Gross Tonnage Ice Class 1A Super

NEWBUILDINGS

Finnlines has ordered three hybrid ro-ro vessels and two Superstar ro-pax vessels. The hybrid ro-ro vessels are expected to start operation in 2021–2022. The Superstar ro-pax vessels are expected to be delivered by 2023.

Hybrid ro-ro Lenght, o.a. (m) 238.00 Breadth, moulded (m) 34.0 DWT, metric tons 17,400 GT 60,370 Total lane length (m) 5,800 Speed (knots) 20 Ice Class 1A Super

Superstar ro-pax Lenght, o.a. (m) 235.00 Breadth, moulded (m) 33.3 DWT, metric tons 11,500 GT 68,460 Total lane length (m) 5,100 Passengers 1,100 Speed (knots) 20 Ice Class 1A Super

FINNLINES 2020 51 Uusiaupuni aantali elsini ngns Turu ano ota St. Petersburg apellsr Paldisi

arhus

ull alm

Travemnde

ostoc Gdynia bec Tilbury

ntwerp eebrugge Operating areas Liner traffic area 31 December 2020

Finnlines’ main operating areas are the Baltic Sea and the North Sea. With more than 170 weekly freight departures and 80 passenger departures, Finnlines today provides efficient shipping services.

Bilbao

Contact information

Find us online Finnlines Plc Finnlines Polska Co. Ltd. www.finnlines.com Komentosilta 1 ul. Aleja Solidarnosci 1C 00980 Helsinki, Finland 81336 Gdynia, Poland P.O. Box 197 tel +48 58 627 4239 00181 Helsinki, Finland tel +358 10 343 50 Finnlines UK Ltd. Finhumber House Finnlines Deutschland GmbH Queen Elizabeth Dock Hedon Einsiedelstraße 43–45 Road 23554 Lübeck, Germany Hull HU9 5PB, Great Britain tel +49 451 150 70 tel +44 1482 377 655

Finnlines Belgium N.V. Rederi AB Nordö-Link Blikken Haven 1333 Lappögatan 3B 9130 Verrebroek, Belgium 21124 Malmö, Sweden tel +32 3 570 9530 P.O. Box 106 20121 Malmö, Sweden Finnlines Danmark a/s tel +46 40 176 800 Multivej 16 8000 Aarhus C, Denmark Finnsteve Oy Ab tel +45 86 206 650 Komentosilta 1 00980 Helsinki, Finland P.O. Box 225 00181 Helsinki, Finland tel +358 10 565 60

52 The Grimaldi Group

With long experience dating back to 1947, the Grimaldi container terminals totalling over 6 million sq. metres in Group specialises in the operation of roll-on/roll-off the Mediterranean, Northern Europe and West Africa as vessels, car carriers and ferries. It is a dedicated supplier well as trucking companies for the transport of cars and of integrated logistics services based on maritime containers. transport to the world’s major vehicle manufacturers. In recent years, the Group has also invested in Through its maritime services, the Naples-based development of the “Motorways of the Sea” in the Group also transports containers, palletised/unitised Mediterranean Sea, introducing new lines and modern cargo and passengers with a modern fleet of more than ro-pax ferries. Currently, its network covers Italy, Spain, 130 ro-ro- multipurpose vessels, pure truck and car Malta, Tunisia, Morocco and Greece for the transport of carriers and ferries, of which about 120 are owned, with trailers, cars and passengers. an average age significantly lower than the industry The high-quality services offered by the Grimaldi average as well as the useful life of the ships. Group are being regularly awarded by its international The Group’s presence in the maritime transport of clientele such as General Motors, FCA, Ford, Honda and vehicles started in 1969 when it introduced a regular Land Rover. service between Italy and the UK. The Group rapidly The Grimaldi Group has long stood out for its strong gained the trust of the major car manufacturers who focus on environmental issues, which in recent years has chose Grimaldi’s vessels to transport their production resulted in a strong commitment and important invest- from Northern Europe to various Mediterranean ments aimed at increasing fuel efficiency, promoting the countries. Throughout the years, the Group rapidly decarbonisation of the industry and reducing harmful developed and now serves over 140 ports in 50 countries emissions from its operations. Over the last years, the in the Mediterranean Sea, Northern Europe, West Africa, Group has designed, ordered and deployed increasingly North and South America. The shore personnel and eco-friendly vessels, implemented green retrofit pro- crews total over 16,000 people. grams for its already operational ships, participated in The Grimaldi Group comprises six main shipping projects to reduce the environmental impact of terminal companies, including Atlantic Container Line (ACL), operations, joined international associations aiming at Malta Motorways of the Sea, Finnlines and Minoan Lines. improving the whole shipping industry’s green records. The Finnish company Finnlines runs a fleet of ro-pax and Finally, the Grimaldi Group is the first Italian shipping ro-ro vessels in the Baltic Sea and Northern Europe, company to have obtained the SMS, ISO 9001 and ISO while the Greek ferry company Minoan Lines operates 14001 certifications for Safety, Quality and Environment. ro-pax services between Piraeus and Crete, and a high- Moreover, the Grimaldi Group is also the first shipping speed service between Crete and the Cyclades Islands. company in Italy to have been awarded the status of The Grimaldi Group has also evolved to become a Authorized Economic Operator – Complete (AEO-F). multimodal transport operator offering integrated logistics services. For this purpose, it currently operates, together with strategic partners, various car and www.grimaldi.napoli.it

Photos: 110th Street Productions, Tasha Doremus, Aleksandr Kuzin, Hanna-Leena Lahti, Rami Lappalainen, Olli Leino, Fabio Löckher, Anna Sarkama-Antila, Marko Stampehl, Northern Works, Kristiina Uppala and Finnlines’ archives. Finnlines Plc Komentosilta 1 00980 Helsinki, Finland P.O.Box 197, 00181 HELSINKI, Finland Phone +358 10 343 50 www.finnlines.com